Why American Capital Agency Is Ready to Rebound

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

$10.9 billion

Industry

Mortgage REITs

Trailing-12-Month Revenue

$1.1 billion

Management

Chairman/CEO Malon Wilkus
President/Chief Investment Officer Gary Kain

Return on Equity (average, past 3 years)

16.1%

Cash / Debt

$15.6 billion / $80.9 billion

Dividend Yield

16.3%

Competitors

Anworth Mortgage Asset
MFA Financial

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

On CAPS, 96% of the 918 members who have rated American Capital Agency believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Staka, offered a balanced take on the opportunity:

Positive:-High yield, low PE, simple business model leveraged to FED stupidity (which is guaranteed)-Recent correction has brought valuation back below tangible book, good entry point

Negative:-Terrible last quarter shows the dangers tied to these REITs but I think they will not be realized in earnest until money printing stops (still more than a year away, if ever)

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. If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few 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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