💡 AGNC Preferred Shares

AGNC preferred shares ($AGNCN) offer high fixed coupons (7-8% per year) and priority of payment over ordinary. They are ideal for those who aim for a stable income stream and prefer more capital protection. Beware, however: their price can be affected by movements in interest rates and the mREIT sector.

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Many investors look to $AGNC (+0.7%) Investment Corp. because of the high dividend yield of the common stock.

But the preferred shares ("preferred shares") $AGNCN can be an even more attractive alternative for those seeking income stability.

✅ How they work:

Preferred shares combine characteristics of stocks and bonds: they offer fixed or predetermined dividends, with priority on payments than ordinary shares. They are exchange-traded, so liquid like stocks, but do not have a maturity date like bonds (they are "perpetual").

✅ Difference from bonds:

Unlike a bond, AGNC is not obligated to repay them at a specific date. However, the company often has the option to call them back ("call") at par value - typically $25 per share-if market conditions make it worthwhile.

✅ Why they matter:

• Dividend flow more stable at about 9% (with quarterly coupon)
• Priority in payouts
• Lower volatility than common stocks
• High return potential for those targeting passive income

In summary, for an investor focused on stability and cash flow, AGNC preferred shares can be an attractive portfolio component.

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