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American Capital Agency Corp. Message Board

  • stockmeister3 stockmeister3 Oct 29, 2012 2:15 PM Flag

    Earnings report makes clear that dividend safe for this qtr and likely next as well

    Taxable earnings ($1.36/sh) AGAIN exceed dividend ($1.25/sh) and the increase in undistributed taxable income (now up to $1.52/sh) shows that they've got money in the bank to support the dividend going forward as QE3 plays out.

    Further good news - the announced buyback confirms that mgmt is prepared to act to support the share price - though I doubt that it gets implemented in practice since the announcement makes clear that they will only buy back shares "when it is meaningfully accretive to our net book value per common share thereby further enhancing shareholder value." Translated - that means that mgmt will only buy back shares if/when the share price is trading below book (currently $32.49/sh - up $3.08 for the qtr). In light of this latest stellar earnings report - I suspect that AGNC will not continue to trade below book and I suspect a rally into the ex-dividend date absent post election fiscal cliff hystery and/or a European implosion or (God forbid) the east coast getting wiped out by the Frankenstorm.

    Glad I held my nose and bought more on Friday.

    Sitting out the storm out here on the west coast and praying for those in harms way....

19.54+0.05(+0.26%)10:37 AMEDT