AGNC Investment Yields 14%. Here Are 3 Things You Should Know Before Buying the Stock.
If you're investing for income, AGNC Investment's (NASDAQ: AGNC) monthly payout and yield of 14.4% is quite attractive.
However, its stock price has fallen significantly over recent years, and investors' overall returns have been less than stellar due to its sensitivity to rising interest rates. The Federal Reserve's potential rate cuts by the end of the year could bode well for AGNC, but there are three things to consider before buying AGNC today.
AGNC Investment invests in agency mortgage-backed securities (MBS), which are pools of residential mortgage loans bundled together and sold to investors. Specifically, AGNC focuses on agency MBS or mortgages where government-sponsored entities like the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) guarantee principal and interest payments.
Source Fool.com