Summary
- AGNC Investment is expanding its portfolio amid a favorable market for mREITs, holding true to its focus on 30-year agency MBS.
- The common shar…
Summary
- AGNC Investment is expanding its portfolio amid a favorable market for mREITs, holding true to its focus on 30-year agency MBS.
- The common shares have had a stellar 2025, with an elevated 28% tangible book premium making investments in preferred shares of AGNC highly desirable.
- Against this backdrop, the odds of a call in the Series C preferred shares are quite elevated in 2026, warranting a downgrade to a Hold rating.
- AGNC common stock is likely to see an improvement in the non-GAAP coverage of its $0.12/share monthly dividend.
- Fed rate cuts are a key risk for the Series C preferreds in 2026, while AGNC common stock will underperform if the Fed takes a more gradual approach to normalizing policy.
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Introduction
AGNC Investment (AGNC) has been one of the best performing mortgage REITs so far in 2025, delivering a total return of 32%, well above the circa 13% gain for the VanEck Mortgage REIT Income ETF (
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