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American Capital Agency Corp. Message Board

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  • phughyoung phughyoung Apr 15, 2012 4:58 PM Flag

    The Shining Star...AGNC

    Well there's a bunch of interesting stats. And the argument that follows is interesting, too.

    Just so no one thinks I'm prejudiced, I own both NLY and AGNC.

    My question about AGNC is this: Growth has mushroomed but income from the stock has fallen. All this growth has not benefited me as an income investor. I did not buy this stock for capital appreciation. I have a modest profit in it, but what I'd really like is for my income to grow. Does anyone think that is likely in the next year?

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    • >>All this growth has not benefited me as an income investor. I did not buy this stock for capital appreciation. I have a modest profit in it, but what I'd really like is for my income to grow. Does anyone think that is likely in the next year?>>

      Hello!! All I can do is show you a graph for having held each stock for 1 year:

      http://finance.yahoo.com/q/ta?t=1y&s=AGNC&l=on&z=l&q=l&c=NLY&ql=1

      Now I'll help you further. Last year AGNC on April 15th traded @ 28.53(close). One year later, last Friday close @ 30.11. You got 1.40, 140, 140, 1.25 dividends also , so you made, (wait for it Jonkai)....drum roll....24.64%(5.45 divi's and 1.58 capital appreciation).

      OK, you didn't buy it for capital appreciation. So donate the capital appreciation from AGNC to your favorite charity and sell AGNC and buy NLY. Then you don't have to worry about capital appreciation. In fact your dollars make more each year because the stock price goes down. So, if the PPS goes down and the dividends remain the same... lo and behold, you will make a higher yield. I've heard Jonkai encourage his fellow cult members to do the same using the same err logic. Makes sense to him...;-)

      Let's now compare NLY....low drum roll, then a fart...3.79%(2.37 divi's and a loss of capital of -1.71). In case Jonkai doesn't have a calculator that's a 650% difference.

      >>My question about AGNC is this: Growth has mushroomed but income from the stock has fallen>>

      Are you kidding?? Do you think a cut of .15 in the dividend is hurting the PPS. Have you looked recently? We are over 30.00, in April. When have we ever traded over 30 in April...hello! I know you apparently dislike capital appreciation. Buy NLY then, they DON'T HAVE ANY capital appreciation.

      >>I have a modest profit in it, but what I'd really like is for my income to grow>>

      I think I'm talking to the wall....;-)

      DocReits

 
AGNC
23.58+0.13(+0.55%)Jul 25 4:00 PMEDT

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