I should bring to your attention that AGNC principal and interest payments are guaranteed by the United States government sponsored enterprise or by US government agency. Of course, if it’s matter to you.
AGNC was incorporated on 2008, how about that . I know NLY and have its shares. But NLY is changing its divs value all the time. It doesn’t fit to my strategy, but AGNC does. BTW it is good to know details you provided. Also in AGNC definitions stated it as REIT company, but your definition is more specific.
NLY also has 13.4% divs and pays it quarterly. But when it lowered its divs from $.88 to $.63 - stock shrinked. Now it’s $.70.
even MFA almost went under and they were unlevered at the time! NLY is the grand daddy of this industry. They have the best risk management and financial engineering in the space. (and the whole mREIT space is just a financial engineering exercise)
I know you’re not supposed to get attached to stocks but I love NLY. I learned about them in my earliest years in the business. They did remarkably well in the crisis too. They look super cheap now to be honest.
Nope He hasn't claimed to do this, he's still invested Even if he had, it wouldn't mean the investment itself was or is no risk If you buy LMNOP and it goes up 2x you can still loose it all. Price appreciation does not cancel risk. See. Go read their financials. Their revenue is not sufficient to cover the dividend they are paying. Hence the reason I mentioned a payout ratio of 400%.
As I sad I will have all my money back on 8/11/25. My dividends allocated to SPAXX (money market). Company already published this. I’m no worry about it happens. So I have my money back. I have Zero risk to loose MY money ! BTW REIT company pays 90% dividends based on their annual taxable income !!! About investment in NLY and AGNC I will publish my research soon.
NLY is not to nice. This is NYC located company. I will post my research soon. I own NLY $$$$$$ from 2021 and not super happy with it. The only good things they pay divs. But its price went down 4 times for 10 years. I’m profitable with it but %% not to attractive.
OK, let me reveal, my skills. I’m Ph.D in math. My primary skills - math statistics (regression, standard deviation, correlation, predictive, cluster, factor analysis) For my analysis AGNC is stable reliable company, consistently paying dividends and will continue according with the trends I counted. For simplicity let me give one sample on 10/23 it had $6.81 p/s and $1.44 divs p/y. 1.44/6.81 =0.211. Above 20% it should shrink its divs as NLY and others did. They were not. AGNC during 10 years has average $9 for max volume 3.15B; $9.5 for volume 3.10B; $10 for volume 3B. So in case of max average for long duration $9 is great price. 1.44/9 =0.16 so 16% is quite of normal for AGNC to pay during 10 years and it is so stable. AGNC is In Bethesda, MD mREIT company incorporated in May 2008. It went through the crisis 10/2008 and was OK. AGNC is in mortgage residential business and covered by US government agency. In comparison NLY is NYC based company incorporated on 1996. NLY is in mortgage for residential and commercial businesses. It doesn’t covered by US government agency. About criticism of my approach. Some person sad if bullet missed you, it doesn’t mean it will miss second time. I would say if bullet missed you for duration of SIX years - it will miss you for next six years. Also living in your environment it’s very low possibility, somebody will shut you down. That in terminology of this gentleman. From regression analysis prospective to have AGNC price $9 or below is safe for long term. From divs trend AGNC is relatively safe in comparison NLY and others REIT and different companies. Why I selected REIT company for my approach - because you will cover your money for shorter duration ! But REIT is relatively riskiest, however AGNC is nice reputable, stable company. It will pay you stable dividends. You so pessimistic, OK buy 100 shares for $9 or below, hold it for a year - you will see, how it goes. I have AGNC and NLY, I made drastically more on AGNC, not to happy with NLY.
I wasted too much time on NLY. i want to like it. it feels like free money, but it isn't. And the pre-tax returns show that it doesn't really perform as well. Though it's probably a good time now with the term structure likely steepening.