3 Reasons to Buy AGNC Investment Stock Like There's No Tomorrow

In the current investment landscape, AGNC Investment (AGNC) stands out as an attractive opportunity for income-oriented investors. With a high dividend yield and a strong track record, AGNC Investment offers compelling reasons to consider adding it to your portfolio. Here are three reasons why you should consider buying AGNC Investment stock like there's no tomorrow.



1. Attractive Dividend Yield: AGNC Investment boasts an impressive dividend yield of 13.81%, which is significantly higher than the average dividend yield of other mortgage REITs and the broader market. This high yield provides a substantial income stream for investors, making AGNC Investment an appealing choice for those seeking to generate passive income. Moreover, the company has maintained a stable dividend payout for an extended period, demonstrating its commitment to returning capital to shareholders.
2. Strong Performance in 2024: AGNC Investment generated a positive economic return of 13.2% in 2024, driven by its compelling monthly dividend. This strong performance is a testament to the company's ability to generate attractive returns in environments where Agency MBS spreads are wide and stable. As the favorable investment backdrop for Agency MBS persists, AGNC Investment is well-positioned to continue delivering strong performance in the future.
3. Favorable Investment Themes: The positive outlook for Agency mortgage-backed securities (MBS) supports a bullish case for AGNC Investment. The Federal Reserve's shift in monetary policy stance, declining inflationary pressures, and accommodative monetary policy have created a favorable environment for Agency MBS. With primary mortgage rates near 7%, the supply of Agency MBS should remain limited and well-aligned with investor demand. Additionally, Agency MBS spreads to benchmark rates remain in a well-defined range, offering levered and unlevered investors attractive return opportunities.



In conclusion, AGNC Investment's attractive dividend yield, strong performance in 2024, and favorable investment themes make it an enticing opportunity for income-oriented investors. By adding AGNC Investment to your portfolio, you can benefit from the company's high income stream and potential for future growth. However, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.