This High Yielding Stock Could Easily See Further Upside

"Plus, it has a 12.16% yield with high expectations for another solid year. It's also about to pay a 12-cent dividend on February 10, which was also paid on January 12, December 9, and November 12. On an annualized basis, that works out to $1.44 per share in dividends. That's significant when combined with the stock's recent price appreciation. For investors seeking both income and upside potential, AGNC has delivered on both fronts."

"Management has been vocal about the company's recent success. In an earnings release, President, CEO, and Chief Investment Officer Peter Federico said: "The fourth quarter of 2025 capped an exceptional year for AGNC shareholders. For the year, AGNC generated an impressive economic return on tangible common equity of 22.7%. Even more noteworthy, AGNC's total stock return in 2025 was 34.8% with dividends reinvested, nearly double the performance of the S&P 500 Index.""

"These securities are backed by government-sponsored entities such as Fannie Mae and Freddie Mac, meaning they are protected against credit losses. This government backing significantly reduces default risk compared to non-agency mortgage assets. That means the company isn't betting on individual investors. It's not exposed to credit mishaps, and it's well protected from housing market stress. In other words, Agency MBS helps remove the riskiest parts of investing in mortgages, credit risk."

AGNC Investment ran from about $7.25 to $12 since April 2025 while offering a 12.16% yield and monthly 12-cent dividends that annualize to $1.44 per share. The combination of dividend income and recent price appreciation has produced notable investor returns. AGNC reported an economic return on tangible common equity of 22.7% and a total stock return of 34.8% in 2025 with dividends reinvested. The portfolio focuses on Agency mortgage-backed securities backed by Fannie Mae and Freddie Mac, which substantially reduce credit risk versus non-agency mortgage assets and provide protection from housing-market stress.

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