4-Star Dividend Stocks Poised to Outperform: American Capital Agency

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 (Nasdaq: AGNC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at American Capital Agency and see what CAPS investors are saying about the stock right now.

American Capital Agency facts

Headquarters (founded)

Bethesda, Md. (2008)

Market Cap

$10.5 billion

Industry

Mortgage REIT

Trailing-12-Month Revenue

$812.7 million

Management

Chairman/CEO Malon Wilkus
President/CIO Gary Kain

Return on Equity (average, past 3 years)

20.2%

Cash / Debt

$9.6 billion / $89.1 billion

Dividend Yield

15.8%

Competitors

Anworth Mortgage Asset (NYSE: ANH  )
Capstead Mortgage
MFA Financial
(NYSE: MFA  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 850 members who have rated American Capital Agency believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, adamlevy, succinctly summed up the bull case for our community:

QE3 won't last forever. It has effectively boosted housing prices and lowered default numbers. In turn, [American Capital Agency's] assets have higher book value. The company recently announced a share buyback for when shares fall below book value. Currently, trading at a price 5% below book value should present investors with a chance to get in near the floor.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, American Capital Agency may not be your top choice.

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