AGNC Pays $0.12 Every Month. Here's How Much You'd Need to Invest to Collect $1,000 a Month.
The mREIT pays a high yield, but its stock price is declining.
Overview
AGNC (NASDAQ: AGNC), one of the largest mortgage real estate investment trusts (mREITs), pays a monthly dividend of $0.12 per share. At $9 per share, that equals a forward dividend yield of 16%. So if you invest $75,000 in the stock today, you can collect $1,000 per month.
That seems like an impressive return, but AGNC's stock has also declined nearly 15% year to date, offsetting most of its dividend payments. That's because AGNC's business is highly sensitive to interest rates, which the Fed recently raised for the first time in three years.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.