I am $10k in the hole at the moment for 2k shares. They say they earned only $0.36. Does not make sense if they have to pay $1.25 dividend. Any body with stamina to read this long report and deciphering greek phrases.
I can appreciate how you feel; REITs are difficult and mREITs are very complex, especially AGNC. Stay long, at least till XDIV. They will continue 1.25, and possibly raise it if coming quarters are as good as expected due to TBA dollar rolls. As someone pointed out, it is taxable income that is most important. The mortgage market is a market and values fluctuate; they had paper losses (that means unrealized) that subtracted from taxable earnings to get the .36/sh but taxable was 1.93/sh. We will get a nice bump in SP here and another bump when div is announced.
Based on the stock price today, you should go with GOOD (not bad).
It's trading above book again, and there will probably be another book decline in Q1.
So that is encouraging.
If it were bad you would look like NLY after their earnings with their stock price drop.
Munir, it looked pretty good. The only concerns are CPR ticked up 1%, and their portfolio took a decent hit in unrealized gains.
For the dividend, you want to focus on these numbers.
Your dividend comes from that 1.93 taxable income.
They also added to the undistributed taxable income yet again which is good.
$1.93 estimated taxable income per common share
$1.25 dividend per common share declared on December 14, 2012
$2.18 estimated undistributed taxable income per common share as of December 31, 2012. Represents an increase of $222 million from $518 million as of September 30, 2012 to $740 million as of December 31, 2012
Good. The earnings came in lower because of some non-cash unrealized losses on assets marked to market. While that may not be good, it doesn't impact the distribution. Also, book value is higher then stock price, so its cheap.
Muni: Please don't take this the wrong way but if you can't figure out the earnings report for a particular company, you're not investing, you're gambling. Suggest you stick with companies with which you are familiar and can comprehend their earnings report and then make an informed decision whether to continue with that investment or sell and move on. AGNC is one of the more complex companies in the marketplace.
i believe it was called "good or rather 'more special'" by one of the questioners on the conference call, and everyone seemed amenable to that terminology
this company is the nuts. i have little bad to say to anyone willing to go all-in on it (other than the un-diversification risk that raises)