AGNC Investment Corp. (NASDAQ:AGNC) Dividend Yield: A High-Dividend Stock to Invest In

AGNC Investment Corp. (AGNC) is a mortgage REIT with a high dividend yield of 14.83%. Despite a decline in tangible book value by 5% in Q2, the company pays a monthly dividend of $0.12 per share. However, some AI stocks are seen as having greater upside potential and less downside risk.

AGNC Investment Corp. (AGNC), a mortgage real estate investment trust (REIT), has been in the spotlight for its high dividend yield of 14.83%, as reported in a recent financial update [2]. Despite a decline in tangible book value (TBV) by 5% during the second quarter of 2025, the company continues to pay a monthly dividend of $0.12 per share. However, some analysts suggest that AI stocks may offer greater upside potential and less downside risk, indicating a shift in investor preferences.

AGNC Investment Corp. operates by purchasing mortgages that have been pooled into bond-like securities. The company's performance is influenced by factors such as interest rates, housing market dynamics, and mortgage repayment rates. Over the long term, AGNC has shown strong total return performance, though its return profile differs significantly from the S&P 500 index [1]. This makes it an attractive option for investors seeking diversification.

The company's Q2 2025 earnings report indicated a miss on net spread and dollar roll income per share, with a decline in tangible book value per share. However, the company's asset yield on its portfolio increased, which may provide a buffer against higher interest rates and prepayments. The economic return on tangible common equity was negative, reflecting the challenges in the current market environment [3].

AGNC's dividend policy remains a key attraction for income-focused investors. Since its IPO in 2008, the company has paid out a total of $14.7 billion in dividends to common shareholders, amounting to $49.36 per share. The high dividend yield, coupled with the company's focus on agency-backed mortgage-backed securities (MBS), makes it a popular choice among investors seeking high yields.

However, the company's high yield comes with risks. The volatile nature of the dividend and the declining tangible book value suggest that AGNC may not be the best fit for investors looking for steady income. The company's performance is closely tied to the mortgage market, which can be unpredictable and subject to regulatory changes.

In conclusion, AGNC Investment Corp. offers a high dividend yield and a unique investment strategy, but it comes with significant risks. The company's performance in Q2 2025 highlights the challenges it faces in the current market environment. While some investors may find AGNC attractive for its total return potential, others may prefer to explore AI stocks with greater upside potential and less downside risk.

References:
[1] https://finance.yahoo.com/news/agnc-investment-stock-buy-now-224100059.html
[2] https://finance.yahoo.com/news/agnc-delivering-one-highest-dividends-054228028.html
[3] https://finance.yahoo.com/news/agnc-investment-q2-earnings-miss-155200387.html