Is AGNC a yield trap?

Asked by: Cicero McGlynn  |  Last update: February 13, 2026
Score: 4.3/5 (27 votes)

AGNC looks cheap and pays a high yield, but its high exposure to various credit and interest rate risks makes it less appealing than other REITs. So for now, I'd sell or avoid this stock (as well as most mREITs) and stick with evergreen retail REITs like Realty Income instead.

Is AGNC dividend sustainable?

AGNC Investment has delivered dividend stability over the last 55 months even though it has been a more turbulent time for the agency MBS market. With market conditions expected to improve as the Fed continues cutting rates, the mortgage REIT should be able to maintain its current dividend policy in the coming months.

Is AGNC a good stock to buy right now?

AGNC Investment currently has an average brokerage recommendation (ABR) of 1.86, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 14 brokerage firms. An ABR of 1.86 approximates between Strong Buy and Buy.

Is AGNC a smart investment?

AGNC Investment (NASDAQ: AGNC) attracts a lot of investing attention for one reason: It has a massive 15% dividend yield. But dividend investors shouldn't run out and buy this stock. It wasn't a dividend buy in 2024, and it won't be one in 2025, either.

Can AGNC go out of business?

The Probability of Bankruptcy of AGNC Investment Corp (AGNC) is 6% . This number represents the probability that AGNC will face financial distress in the next 24 months given its current fundamentals and market conditions.

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Who owns the most AGNC stock?

According to the latest TipRanks data, approximately 74.14% of AGNC Investment (AGNC) stock is held by retail investors. Who owns the most shares of AGNC Investment (AGNC)? Vanguard owns the most shares of AGNC Investment (AGNC).

Is AGNC safe?

That said, AGNC Investment is not a bad investment for all investors. It is a mortgage REIT, which means it buys mortgages that have been rolled up into bond-like securities, instead of owning properties and leasing them to tenants like most REITs.

Why is AGNC going down?

AGNC Investment (AGNC -1.62%) is one stock burdened by the higher-interest-rate environment. The mortgage real estate investment trust (mREIT) pays an appealing 14% dividend yield, but the stock price has plummeted 32% since early 2022 when the Fed first began its interest rate hiking cycle.

Is AGNC backed by the government?

AGNC is a leading internally managed mortgage REIT that invests predominantly in Agency residential mortgage-backed securities (Agency MBS) guaranteed by a U.S. Government-sponsored enterprise (GSE), such as Fannie Mae and Freddie Mac, or a U.S. Government agency, such as Ginnie Mae, on a leveraged basis.

Is AGNC good long-term?

AGNC's Favorable Long-Term Outlook

As a levered and hedged investor in Agency MBS, AGNC's return opportunities are most favorable when Agency MBS spreads to benchmark rates are wide and stable and interest rates and monetary policy are less volatile. The long-term outlook for Agency MBS remains favorable.

What is the future of the AGNC?

Stock Price Forecast

The 7 analysts with 12-month price forecasts for AGNC Investment stock have an average target of 10.43, with a low estimate of 9.00 and a high estimate of 12. The average target predicts an increase of 14.36% from the current stock price of 9.12. * Price targets were last updated on Dec 9, 2024.

What is the long-term forecast for AGNC stock?

AGNC Investment is forecast to grow earnings and revenue by 29.7% and 25.3% per annum respectively. EPS is expected to grow by 9.7% per annum. Return on equity is forecast to be 18% in 3 years.

Who are the competitors of AGNC?

AGNC vs. NLY, STWD, ARI, TWO, RC, CIM, PMT, ARR, MFA, and DX.

Does AGNC make money?

How does AGNC make money? Many REITs buy properties, rent them out, and split the rental income with their investors. However, mortgage REITs (mREITs) like AGNC don't purchase any properties -- they only offer their own mortgages or purchase mortgage-backed securities (MBSes) to generate interest income.

Who are the major shareholders of AGNC?

Largest shareholders include Vanguard Group Inc, BlackRock, Inc., VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, NAESX - Vanguard Small-Cap Index Fund Investor Shares, Vaughan Nelson Investment Management, L.p., VISVX - Vanguard Small-Cap Value Index Fund Investor Shares, State Street Corp, Geode ...

Has AGNC ever split?

We currently have no AGNC Stock Split History on this stock.

Is AGNC a good REIT?

AGNC pays a much higher yield than most REITs. But it's also underperformed many other REITs and the S&P 500. It looks cheap, but it faces a lot of credit and interest rate risks.

How is AGNC taxed?

As a REIT, we are required to distribute annually 90% of our taxable income, and we will generally not be subject to U.S. federal or state corporate income tax to the extent that we distribute all our annual taxable income to our stockholders on a timely basis.

What is the leverage of AGNC?

AGNC Investment's financial leverage hit its 5-year low in December 2021 of 7.7x. AGNC Investment's financial leverage decreased in 2019 (11.2x, -3.5%), 2020 (8.5x, -23.7%), and 2021 (7.7x, -9.2%) and increased in 2022 (8.3x, +7.2%) and 2023 (10.8x, +30.3%).

Is AGNC in debt?

Total debt on the balance sheet as of September 2024 : $69 Million USD. According to AGNC Investment's latest financial reports the company's total debt is $69 Million USD. A company's total debt is the sum of all current and non-current debts.

What is the fair value of AGNC Investment?

As of 2025-01-12, the Fair Value of AGNC Investment Corp (AGNC) is 32.55 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 9.14 USD, the upside of AGNC Investment Corp is 256.1%.