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Stock impact report

Why This 14%-Yielding Dividend Stock May Perform Well in a Recession [Yahoo! Finance]

AGNC Investment Corp. (AGNC) 
Last agnc investment corp. earnings: 4/29 04:01 pm Check Earnings Report
US:NASDAQ Investor Relations: ir.agnc.com
Company Research Source: Yahoo! Finance
The Atlanta Federal Reserve's estimate for real gross domestic product (GDP) growth for the first quarter has gone from predicting growth of more than 2% in late February to a 2.4% decline as of its last estimate on March 6. While the specter of a recession is generally not good for the market, there is one high-yielding dividend stock that could perform well in this environment: AGNC Investment (NASDAQ: AGNC). A high yield in a tumultuous market AGNC is a mortgage real estate investment trust (REIT) , which is an investment company that owns a portfolio of mortgage-backed securities (MBS) . It generates income through the spread between the yield of the mortgages it holds in its portfolio and its funding costs (the short-term debt it takes on to buy the MBS). For example, if funding costs were 4% and it bought a mortgage-backed security with a 7% yield, it would earn a 3% spread on its investment. A 3% return is not that exciting, so mortgage REITs typically use leverage, or Show less Read more
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