Based on FED quantitative easing, will drive YIELD SPREAD where only $3.00 can be paid at end of 2013. Once, quarterly trend is established, it will be hard to stop the selling. Remember, large funds using this as substitute for yield return for pension systems, municipalities, mutual funds to goose returns, once they start to see share erosion, the tide will overwhelm the bullish sentiment. With this negative outlook on earnings and dividends, I was shocked earnings got knocked down to $4 from $5.50 and $6.00, in a couple quarters. Longer term, 2 years out, this will correct, dividend will probably stabilize at $2.00 something and TARGET PRICE OF $15 - 20, WHAT IT WAS TWO YEARS AGO WILL BE A GOOD TIME TO REDEPLOY YOUR WEALTH.
Right now, wealth managers should be protecting their hard earned principle and just sit in a 0.65% money market account and wait to redeploy wealth when the risk to principle is low. Right now, you could loose 50% - 60%, just to captual a quarterly 4% dividend. Wait a year to capture the 4% quarterly divy when the stock price is $15-20, the odds are in your favor. Folks, I did the same analysis above a couple years back when I bought this at $18. I took my money off the table when it hit $36 after reporting lower earnings from quantitative easing. This was topping this year in the mid-thirties, if you are a good money manager, you should have sold your AAPL and AGNC near their tops. If you didn't, learn from the mistake and don't go down with the ship.
Sentiment: Strong Sell
Even IF it is cut to $3 that is a 10% yield. See if you can beat that elsewhere.
It is pretty obvious that all this is short selling and fear mongering. I have a difficult time believing that long term investors are selling at this discount to book value.
There are many areas to invest to get a 10% or better return like MLPs, and they can actually grow their divi not reduce it. I sold out to soon but put money in MTGE and sold out at the high. I am waiting now till the there is a clear bottom and what the earnings will be to support the divi on these. I too made a lot of money on these stocks and hate to see what is happening to them but you have to protect your principal. GLTA
What a misleading headline. Anyone who trades this stock knows the dividend has not been declared yet. (AGNC has not yet officially announced its next dividend payout). This kind of untrue headline should not be allowed.
I was in on the IPO and early, remember this was touted as the next Annaly and it actually was or better. I remember posting on one of the messageboards it was the Apple of Mortgage REIT. I guess I was right, but like all stocks they have to be traded and when trends change you have to sell. I have traded this between 26 and 36, lots of back and forth, and this has been good to me, very good, but I am not going risk my principle in this type of market. The bubble is going to be pricked soon, be very very careful.
Sentiment: Strong Sell