AGNCO - AGNC Q4 Earnings: The Preferreds Remain Far Better Than The Stock
2024-01-26 13:32:11 ET
Summary
- AGNC Investment Corp. has historically delivered poor returns with ultra-high volatility, making it a less attractive investment compared to cash.
- Q4-2023 had some solid improvements, including one real blowout figure.
- We revise our outlook and tell you whether we would buy the turn.
From our first standalone coverage of AGNC Investment Corp. ( AGNC ), we have pretty much stuck on neutral. The stock fell in the category of "why bother when returns won't be juicy". That has generally played out over this entire timeframe. Investors would have been better off sitting in cash and liquidating it versus staying in AGNC. Most investors use AGNC as an "income" source, so after taxes on those large dividends (which cannot be offset against the capital loss), you are down quite nicely relative to cash. Note that we have shown the total returns below of some popular cash-parking funds like PIMCO Enhanced Short Maturity Active Exchange-Traded Fund ETF ( MINT ), BlackRock Ultra Short-Term Bond ETF ( ICSH ), and US Treasury 3 Month Bill ETF ( TBIL )....
AGNC Q4 Earnings: The Preferreds Remain Far Better Than The Stock