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Here's How AGNC Investment Can Afford Its 15% Dividend Yield

TheMotleyFool

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Here's How AGNC Investment Can Afford Its 15% Dividend Yield: https://g.foolcdn.com/editorial/images/745372/female-investor-reviewing-her-portfolio-on-a-laptop.jpg

Rising interest rates have pushed dividend yields up. But a yield of nearly 15%? That sounds too good to be true.

Believe it though. Shares of real estate investment trust (REIT) AGNC Investment (NASDAQ: AGNC) are now dishing out 14.9% of their present value in the form of annual dividends, split evenly among all 12 months of the year. And for the record, yes, these payments are fully covered by actual profits.

How can the company afford such a big dividend yield? To be fair, the stock's relative long-term weakness helps in this regard -- the lack of dividend growth since 2020 following its reduced dividend payments since 2018 is less than inspiring.

Source Fool.com

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