AGNC - AGNC: Don't Overthink Its Juicy High Yields (Rating Upgrade)
2024-04-08 08:30:00 ET
Summary
- AGNC Investment Corp. investors await more clarity on the timing and extent of the Fed's interest rate cuts.
- AGNC boasts a 15% dividend yield that should provide a substantial buffer to mitigate near-term uncertainties.
- AGNC's valuation remains below its long-term average, indicating that the market has not fully reflected a recovery in the leading mREIT.
- I explain why AGNC's buying sentiments have remained remarkably resilient.
- AGNC buyers should consider capitalizing on its improved buying momentum to add exposure before other investors realize it.
AGNC Investment Corp. ( AGNC ) investors who have stayed on the sidelines since my last AGNC update in late January 2024 have avoided its stagnating momentum. Accordingly, I urged investors to consider letting AGNC take a break after its Q4 surge since bottoming out in October 2023. As a result, AGNC has underperformed the S&P 500 ( SPX ) ( SPY ) since my previous article, even when adjusted for its high dividend yield....
AGNC: Don't Overthink Its Juicy High Yields (Rating Upgrade)