AGNC Investment Corp., a mortgage real estate investment trust focusing on agency-backed mortgage securities, faces ongoing book value erosion in its common shares. However, its Series E preferred shares yield 8.75%, providing better capital preservation and lower risk of dividend cuts. Recent quarters show improved net interest income driven by a 4.98% asset yield and reduced borrowing costs of 3.79%. AGNC's prudent leverage and increased hedging help mitigate interest rate risks, supporting income stability for preferred shareholders.
The Federal Reserve has quietly cut interest rates by 75 basis points from 4.5% to 3.75% between late 2025 and early 2026, with expectations of two more cuts in 2026. Despite this, the 10-year Treasury yield remains high at 4.49%, delaying the re-rat...
A married couple in the 24% federal tax bracket earning $80,000 from BDCs and mortgage REITs in a taxable account pays $19,200 in federal taxes annually. Holding these investments inside a Roth IRA avoids this tax, allowing the full $80,000 dividend ...
