This Ultra-High-Yield Dividend Stock Believes Its Headwinds Are Finally in the Rearview Mirror
Surging interest rates have made the last few years very challenging for the real estate sector. They've increased borrowing costs while causing a lot of volatility in asset values.
AGNC Investments (NASDAQ: AGNC) hasn't been immune to these issues. While the mortgage real estate investment trust (REIT) invests in low-risk, mortgage-backed securities (MBS) guaranteed against credit-default risk by government agencies, it has battled volatility in interest rates and MBS spreads. That has weighed on its returns. However, it believes those headwinds are about to fade, which bodes well for its ability to maintain its 15.1%-yielding monthly dividend.
AGNC Investments finished strongly in 2023. The REIT recorded $1 per share of comprehensive income during the fourth quarter. That was a notable improvement from the third quarter when it posted a $1.02 per-share comprehensive loss. The company generated $0.30 per share in comprehensive income for the full year.
Source Fool.com
