With the fed on hold from raising rates until at least middle of 2012 (according to most fed watchers)your 18% dividend should be fairly safe AGNC has paid out 1.40 per share per quarter for several years now, this is no brainer in this downtrending market.
Yes if they issue more shares the stock will drop, then get in heavy that is what I did.
I bought in on 5/6/10 at $25.80 after a new additional share annoucement, and I AM UP 18% in VALUATION OF MY SHARES AND GOT STOCK WHEN IT WAS PAYING A 22% DIVIDEND, TOTAL RETURN=40%.
Note all portfolios that are sucessful over time have 40%-50% of their retuns from dividends, don't sell yourself short get into this stock not as a trading vehicle but as a core holding. Or you can suck eggs with your banks CD or money market 1.4% return, LOL. Get serious about your investing, I'm out. SHARK
It's simple math: buy at SPO announcement and sell the day before XD date for a CapGain nearly double the dividend rate. Do this after each SPO/XD cycle for an annual gain of nearly 40% vs. 18% + a few % in capital appreciation.
Which would you rather have, 40% or 22%-24% annually? No brainer; the timing isn't that hard to do since both SPO's and XD dates are announced in advance.
10 to 20 percent in AGNC will take a lot of Beta out of your portfolio. This is a sound idea. I invested in AGNC years ago, but thought I could do better and sold out. What a mistake. I think AGNC will be good for another year, maybe more. I guess I'm watching short term rates and will re-consider my AGNC if short term rates spike. Good luck to you. You found AGNC you're brighter than most.