Today I would like to introduce a stock that plays a very special role in my portfolio - not because of its huge price potential, but because of its constant monthly cash flow: AGNC Investment Corp. $AGNC (-0.43%)
I am invested here and am even considering adding more. For many, AGNC is too special or too risky - for me, it is a targeted component of my dividend strategy that delivers exactly what I expect from it: monthly income with a dividend yield of over 13%.
What does AGNC do?
AGNC is a so-called mREIT (mortgage real estate investment trust), specializing in agency-backed mortgage-backed securities - i.e. mortgage securities that are backed by the US government (e.g. Fannie Mae, Freddie Mac). Compared to other mREITs, the risk is therefore somewhat cushioned because the state is liable in the event of an emergency.
AGNC earns money through the difference in interest rates between short-term financing and long-term mortgage securities - basically like a bank, but highly leveraged.
Why I consciously hold AGNC:
🔸 Monthly dividend
This is a real plus point, especially for income investors like me: cash flow every month - predictable and regular. It almost feels like a small salary bonus.
🔸 Yield currently over 13 %
Sure: dividends like this don't come without risk, but I see AGNC as a controlled income generator in the portfolio. It is important to be aware of where the yield comes from - and to understand the business model.
🔸 Agency bonds = government-backed
A crucial point for me: AGNC invests almost exclusively in mortgages guaranteed by the US government. That makes a huge difference compared to many other mREITs that go into high-risk securities.
🔸 Many years of experience & management
AGNC has been around since 2008, survived the financial crisis and has been paying monthly dividends ever since. Experience counts in this asset class - and it is available here.
What you need to know:
Of course, AGNC is not a defensive stock. Prices can fluctuate, especially when the FED changes interest rates. Therefore: For me, this is not a basic investment, but a strategic income component that I deliberately combine with more stable stocks such as Unilever, J&J or Pepsi.
📈 My conclusion:
AGNC is certainly not for everyone - but if you're looking for regular, high distributions and keep an eye on the interest rate landscape, you could have an interesting income tool in your portfolio here.
I'm staying invested here, taking the monthly dividend with me - and taking the opportunity to buy more when the share price falls.
What do you think of mREITs like AGNC? A strategic addition or a red rag? I look forward to your opinions!
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$VICI (-0.28%)
$MAIN (-0.95%)
$AGNC (-0.43%)
