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'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 |
$5.1 billion |
| Industry |
Mortage REIT |
| Trailing-12-Month Revenue |
$549.2 million |
| Management |
Chairman/CEO Malon Wilkus
CFO Bernice Bell
|
| Trailing-12-Month Return on Equity |
18.3% |
| Cash/Debt |
$2.1 billion / $35.3 billion |
| Dividend Yield |
20.1% |
| Competitors |
Annaly Capital Management (NYSE: NLY )
Anworth Mortgage Asset (NYSE: ANH )
Capstead Mortgage (NYSE: CMO )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 665 members who have rated American Capital Agency believe the stock will outperform the S&P 500 going forward. These bulls include StockDocStan and All-Star dmccartney, who is ranked in the top 2% of our community.
Earlier this month, StockDocStan tapped American Capital Agency as a particularly tempting income opportunity: "In tough markets, grab a yield, and if you can get yield from a company that buys government backed securities, all the better."
In fact, American Capital Agency currently boasts a whopping dividend yield of 20.1%. That's higher than that of rivals Annaly (14.6%), Anworth (14.6%), and Capstead (15.1%).
CAPS All-Star dmccartney elaborates on the bull case:
Because it is a Mortgage REIT, this stock is required to pay out approximately all it's earnings, and currently yields at least 19%.
Like most of the mortgage REIT's this one makes money by borrowing at low rates and buying mortgages at higher rates, and pumps up the earnings by using leverage. It expands by issuing more shares. As long as interest rates stay low, this stock should produce outsized dividends.
What do you think about American Capital Agency, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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