This is a great output output of stocks

AGNC Investment (NASDAQ: AGNC)With the surface yield of 14.3% of this writing, is one of the highest yields of markets. It also pays a monthly payment.

Big dividends may seem tempting, but it’s sustainable? Let’s dig deeper into the AGNC’s business style to see if it is a high-productivity trap or an effective investment.

The coins of the watered coin on a small piggy bank. — Image source: Getty image.

Agnc is a real estate investment trust (Repeated). But unlike traditional reits – which purchases properties, rent it out, and share income to any of their investors. Instead, it was a mortgage reit (MReit) which comes from your own mortgage and buying a mortgage stock in its interest income.

As well as traditional reits, Accn must be paid at least 90% of its final income to maintain favorable taxes. But while setting traditional profits usually measure their profits from operations (FFO), Miles Gauge their income through stock.

The net distribution refers to the output received in the mortgage and its MBS providing funding costs to the property. It generates its dollar roller by selling announced MBS (TBA) in the current month is possible to buy a similar MBS (proposal) in the future.

Increased interest rates often increase both these figures. But in the past year, the spread income of AGC and dollars per share, with a related network), diarrhea.

Metal	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024
Net Distribution and dollar rolling income per share	$ 0.60	$ 0.58	$ 0.53	$ 0.43	$ 0.37
Modern net book value per share	$ 8.70	$ 8.84	$ 8.40	$ 8.82	$ 8.41

Source Source: Agnc.

For the full year, the net rolls of AgCC and the dollar drops 28% to the federal stock cutting its interest rate. But also comfortably covered in its $ 1.44 dividend per share.

Agnc’s business model may seem to be at risk, but it allocate 89.4% of the $ 73.3 billion of agency, which Freddie Mac, or Ginnie MAE. The government supports the company should prevent it from important mortgage crisis. The risk of risk of its new Mortgage TBA for 9.4% of its part.

For 2025, the analyst will earn from the distribution of ACCC and dollars to decrease 15% to the stocks of interest rates. That will also cover the passive dividends of $ 1.44 per share, but the investor may be careful with a larger rate of cutting.