AGNC Investment Stock: 13%-Yielder Hits Record High
January 27, 2026
AGNC Stock Pays Monthly Dividend
Higher-interest-rate environments aren’t exactly ideal for real estate investment trusts (REITs). That’s primarily because REITs need to borrow a lot of money to expand their property portfolios, and higher borrowing costs can cut into profitability and even dividends.
But with interest rates heading lower, the outlook for REITs, and more specifically, mortgage REITs (mREITs) like AGNC Investment Corp (NASDAQ:AGNC), remains robust.
In fact, if you look at the chart for AGNC, you can see exactly how interest rates affect REITs. In November 2023, the Federal Reserve hinted that it was done raising interest rates. In December, it indicated that rates would eventually start coming down.
Then, in April 2025, U.S. President Donald Trump unveiled his global tariff policy. Speculation on how tariffs would impact the economy hammered the stock market. Resilient economic data and lower interest rates have helped propel the stock market to record levels.
Chart courtesy of StockCharts.com
Since the start of November 2023, AGNC stock has been trending higher, rising approximately 122%. That’s total return, and includes reinvested dividends. Had an investor opted to take the monthly payouts in cash, the total return would dip to 61.46%.
AGNC stock continues to perform well over the short term as well. On January 5, the stock hit a new record high of $11.22. That puts it up:
- 17.5% over the last three months
- 28% over the last six months
- 39.5% on an annual basis
About AGNC Investment Corp
AGNC Investment is an mREIT that invests primarily in residential mortgage-backed securities (RMBS). In the past, mortgage-backed securities (MBS) played a big role in the last financial crisis. As a result, some investors may feel a little nervous about mREITs like AGNC. But, AGNC Investment does not invest in all types of MBS.
Instead, the mREIT’s main focus is RMBS that are guaranteed by the Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac). (Source: “Q2 2025 Stockholder Presentation,” AGNC Investment Corp, October 21, 2025.)
As of September 30, 2025, AGNC’s investment portfolio stood at $90.8 billion, an increase of $8.5 billion from June 30, 2025. Of that, the majority ($76.3 billion) is from agency MBS.
With principal and interest payments guaranteed by a U.S.-government-sponsored enterprise or a U.S. government agency, these securities can provide a predictable income stream to AGNC.
It’s not a 100% guarantee of course. The company is still susceptible to domestic and global factors, especially the Federal Reserve’s monetary policy, which has a direct impact on the Treasury and other fixed income markets.
Another Solid Quarter for AGNC Investment
For the third quarter ended September 30, 2025, AGNC reported comprehensive net income of $0.78 per share, up from $0.64 in the same prior-year period and a loss of $0.13 per share in the second quarter. (Source: “AGNC Investment Corp. Announces Third Quarter 2025 Financial Results,” AGNC Investment Corp, October 20, 2025.)
Commenting on the results, Peter Federico, the mREIT’s president and chief executive officer, said, “In the third quarter, the Federal Reserve’s pivot to a less restrictive monetary policy stance and the easing of fiscal policy concerns drove robust financial market performance and a significant improvement in investor sentiment.
“Looking ahead, several macroeconomic dynamics continue to support our constructive outlook for Agency MBS. A favorable range for mortgage spreads to benchmark rates has emerged over the last four years.”
More Than $15.0 Billion Paid in Dividends Since May 2008 IPO
AGNC Investment is a dividend machine. Since being formed in May 2008, which, if you remember, was in the midst of the Great Financial Crisis, the mREIT has financed 350,000 homes and returned more than $15.0 billion in dividends. (Source: “Q4 Investor At-A-Glance,” AGNC Investment Corp, January 27, 2025.)
For income investors, AGNC pays their dividends monthly. And it’s always better to get paid monthly than quarterly. In December, the mREIT paid a monthly dividend of $0.12 per share, or $1.44 on an annual basis, for a forward yield of 13%.
In addition to a substantial monthly dividend, AGNC also provides investors with great total shareholder return.
Since its May 2008 initial public offering (IPO), the company’s dividend has fueled a total stock return of 588%, exceeding comparable indices and other yield-oriented alternatives.
The Lowdown on AGNC Investment Corp
AGNC Investment Corp is an mREIT with agency-guaranteed residential MBS investments paired with highly attractive funding. And the massive agency MBS market is considered by the U.S. Federal Reserve to be a pillar to the country’s financial system.
Of late, agency mortgage-backed securities were one of the best performing fixed-income asset classes during the third quarter. In fact, they have now outperformed U.S. Treasuries for five consecutive months for the first time since 2013.
Going forward, as the largest levered agency MBS-focused investment vehicle, AGNC Investment Corp is well-positioned to generate attractive risk-adjusted returns in this evolving investment environment. And this should help power its stock and monthly ultra-high-yield dividend.
