I feel like AGNC has stabilized and doing better than earlier. Is there any chance of increasing the dividends back to $1.05. Any guesses when this could happen?
I really believe we will see the dividends increase and the price increase too. Nothing like these stocks stay down for ever, and we will have our cake. I did buy more at these sale prices.
Sentiment: Strong Buy
You most likely feel this way because the stock price has been going up. I seriously doubt that from that fact alone one can claim much of anything else other than the fact that the difference between the book value and stock price is narrowing which is expected behavior. The long term stability of the company's financial situation will be determined by future interest rates and that isn't a promising scenario as interest rates will go up as soon as the fed has determined that the economy no longer needs its help. And if you own AGNC at that time you will wish you had not. But for now you can own it and ignore this but you really need to have a no BS exit plan. At some point the smart money will dump and the bag holders will hold. I don't play that game. I value my money too much.
The yield isn't even that great anymore compared to what it was. At 20% yield it was a lot easier to justify the risk of a highly leveraged investment. But it seems to me that the reward isn't enough to justify the risk of what is coming. I think that some people simply get used to owning a stock and become complacent. And it has to be the case that most of the longs that are still holding cannot get their heads around the level of risk that they are being exposed to or else they would have sold. This is not a lesson you want to learn the hard way. But I am convinced that anyone still holding at this point is going to do just that.