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Stock impact report

Should You Forget AGNC and Buy These 2 High-Yield REITs Instead? [Yahoo! Finance]

Realty Income Corporation (O) 
Last realty income corporation earnings: 2/19 04:05 pm Check Earnings Report
US:NYSE Investor Relations: realtyincome.com/investors/default.aspx
Company Research Source: Yahoo! Finance
It's a mortgage real estate investment trust (mREIT) that originates its own mortgages and invests in mortgage-backed securities (MBS). It books the interest from those mortgages as its net profit, which it then shares with investors through its big dividends. To hedge against another housing crisis, AGNC allocates 89.4% of its $73.3 billion portfolio to agency MBS assets, which are backed by Fannie Mae, Freddie Mac, or Ginnie Mae. But in 2024, AGNC's net spread and dollar roll income per share dropped 28% to $1.88 per share as the Fed's three interest rate cuts reduced its profitability. That still easily covered its $1.44 in dividends per share for the year, which it paid out on a monthly basis. But for 2025, analysts expect AGNC's net spread and dollar roll income to drop another 15% to $1.60 per share as interest rates keep sliding. That raises some near-term concerns about its massive dividend, even though it looks sustainable for now. Instead of chasing AGNC's high yield, Show less Read more
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