AGNC Will Maintain It's Quarterly Dividend of $1.25/Share
Great article yesterday on Seeking Alpha titled, "American Capital Agency Corp.'s Detailed Dividend Sustainability Analysis". Of course, this article was published before the earnings release. Nonetheless, some very compelling points.
It was a great article except that it ignored reality. It assumed that AGNC would continue to thrive in the current market, which clearly is not happening. How AGNC can sustain it's dividend while posting losses requires magical thinking. One hopes that the conference call will provide clarity about the dividend going forward.
The initial comments by management in reaction to the earnings seem to suggest that the quarter was an anomaly. I've been a holder of AGNC for just over 6 months and have no intention of selling. If anything, I'll add to my cost basis if the stock should happen to go below book value.