AGNC has a great Dividend at around 10%, used to be 20% though when money was near free as they make their money on (long-term/short-term) credit swaps. Loose monetary policy fed AGNC coffers and loose monetary policy has been returning. After seeing 3 rounds of QE along with 3 rate cuts in 2019 and a presidential push for negative interest rates from the feds, there is a lot of room not only for AGNC to return to 20% dividends but also see quite a bit of price growth.
To be fair, AGNC has been in a massive descending channel since 2012 and overall the trend is bearish on the charts and we are currently mid channel. It is because of the information above that I suspect AGNC may break out of this multi-year descending channel in 2020. Even without breaking out of channel, just remaining within the constructs of the current trend, AGNC should see a little over $20 by mid 2020 along with increased distributions.
There is always the chance that we see another real-estate market crash and AGNC's books will be full of junk but absent that, this is a great play for 10% gains and 5% dividends over the next 6 months and with a break out of channel and reversal of trend, this could be a great multi-year hold. I am holding AGNC long, I have held them off and on for many years. This is not investment advice, just some observations I have made in my evaluation. DYOR, invest with care.
S
To be fair, AGNC has been in a massive descending channel since 2012 and overall the trend is bearish on the charts and we are currently mid channel. It is because of the information above that I suspect AGNC may break out of this multi-year descending channel in 2020. Even without breaking out of channel, just remaining within the constructs of the current trend, AGNC should see a little over $20 by mid 2020 along with increased distributions.
There is always the chance that we see another real-estate market crash and AGNC's books will be full of junk but absent that, this is a great play for 10% gains and 5% dividends over the next 6 months and with a break out of channel and reversal of trend, this could be a great multi-year hold. I am holding AGNC long, I have held them off and on for many years. This is not investment advice, just some observations I have made in my evaluation. DYOR, invest with care.
S