Despite Shifting Momentum, AGNC Investment's Ultra-High-Yielding Dividend Looks Safe

AGNC Investment (NASDAQ: AGNC) offers investors a prodigious payout. The mortgage-focused real estate investment trust (REIT) currently yields around 14%. That's more than 10 times the S&P 500's recent dividend yield of around 1.3%.

The mortgage REIT experienced some renewed headwinds in the second quarter, which might increase concerns about dividend sustainability. However, it remains optimistic about the future, which bodes well for its ability to maintain its massive monthly dividend.

AGNC Investment's financial results took a step back in the second quarter. The company reported a comprehensive loss of $0.13 per share, down from $0.48 per share of comprehensive income in the first quarter, while its net spread and dollar roll income was $0.53 per share, down from $0.58 in the first quarter. Meanwhile, its tangible book value per share declined by 5%. That decline and paying $0.36 per share in dividends during the quarter caused its economic return on tangible common equity to be negative 0.9% in the period.

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Source Fool.com