Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT American Capital Agency
With that in mind, let's take a closer look at American Capital Agency's business and see what CAPS investors are saying about the stock right now.
American Capital Agency facts
| Headquarters (founded) | Bethesda, Md. (2008) |
| Market Cap | $6.7 billion |
| Industry | Mortgage REIT |
| Trailing-12-Month Revenue | $850.6 million |
| Management | Chairman/CEO Malon Wilkus CFO John Erickson |
| Trailing-12-Month Return on Equity | 19.8% |
| Cash/Debt | $2.2 billion / $49.5 billion |
| Dividend Yield | 16.9% |
| Competitors |
Anworth Mortgage Asset Bimini Capital Management MFA Financial |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 774 members who have rated American Capital Agency believe the stock will outperform the S&P 500 going forward.
Just last month, one of those Fools, All-Star jwray01, tapped the stock as a particularly timely opportunity:
Borrows money short term from the federal government, and buys much higher-interest MBS that are backed by the federal government. The only risk is that the fed might raise short term interest rates. But they've said they won't do it till at least 2014. I think they won't do that until there's an economic recovery, in which case the rest of my portfolio would go up. This makes it a good diversification play.
Of course, despite its four-star rating, American Capital Agency may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
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