American Capital Agency (NASDAQ:AGNC) is preparing to distribute less of its middle name in the form of shareholder payouts. The real estate investment trust has declared a common stock dividend of $1.05 per share for its Q2. This is to be paid on July 26 to shareholders of record as of June 28. That amount represents a chop of 16% from the company's previous distribution of $1.25, which was handed out at the end of April.

The firm is a regular dividend payer, although its distribution has dropped in stages, from $1.50 per share to the current level, since July 2009.

The new dividend annualizes to $4.20 per share. That yields 16.6% at American Capital Agency's most recent closing stock price of $25.34.

Fool contributor Eric Volkman has no position in American Capital Agency, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.