06-26-2014, 02:39 PM
When I first bought AGNC in 2012, its yield was 17%. My yield on cost is now 8.8%. My unrealized capital loss is 21%. Sounds pretty bad, doesn't it?
Not to me. I do not invest for capital gains. Current income is my focus. My combined current yield for all of my accounts is 6.86% and YOC is 7.77%. The one year weighted average dividend growth rate of my combined portfolios is 5%, even with the negative growth rate of AGNC. I have a preponderance of high yield low growth stocks, so I consider 5% dividend growth to be an excellent result.
For me, AGNC is still pulling its weight and then some.
For others, I can understand that its variable dividend and potential for unrealized capital loss make it undesirable. AGNC and others like it must be approached with eyes wide open if you do not want to be panicked out of its high dividend.
Not to me. I do not invest for capital gains. Current income is my focus. My combined current yield for all of my accounts is 6.86% and YOC is 7.77%. The one year weighted average dividend growth rate of my combined portfolios is 5%, even with the negative growth rate of AGNC. I have a preponderance of high yield low growth stocks, so I consider 5% dividend growth to be an excellent result.
For me, AGNC is still pulling its weight and then some.
For others, I can understand that its variable dividend and potential for unrealized capital loss make it undesirable. AGNC and others like it must be approached with eyes wide open if you do not want to be panicked out of its high dividend.