The concept behind AGNC, NLY, CMO, etc. is a valid money-making system. You borrow short term cheap and you lend longterm at a higher rate. If you trace the lifetime of NLY, even before it went public, it has a history of dividend paying that goes back over 10 years. CMO also has a worthwhile history. Of course dividends are low during periods of high short term rates, but I do not think that will occur for a number of years in the USA. We still have growing unemployment and the Obama/Socialist administration is commited to encouraging borrowing. Even when short term rates go up, it will have to happen in stages, and AGNC will still be able to pay relatively high dividends. When short term interest rates approach 4% then it may be time to sell out of AGNC, NLY, CMO, etc.
Also, meant to say that when AGNC sells additional stock it is NOT just more dividends to pay, It is also more income from the invested funds. If the business is good, the more money AGNC has to invest the more profits that company can make. Why do so many of your only see the additional shares as costing the company more dividends? Don't you realize that the new money will create more mortgages to be sold? My only caveat is to wonder whether our (dishonest) government will honor its explicit commitment to insure these FHA type mortgages if the sh-t hits the fan and these new buyers again default??? I foresee a multi year, longterm, recession like the time from 1929 to 1945. If true, then this company will be a wealth of dividends for smart investors.