AGNC: A Dividend Dilemma in the Land of Rate Cuts

AGNC, a mortgage real estate investment trust, operates in a realm where interest rates are both sword and shield. Its portfolio, 89.1% backed by the government’s ironclad guarantees, seems a fortress-yet even fortresses tremble when the winds of policy shift. Traditional REITs thrive on low rates, but mREITs like AGNC require a delicate balance, a “Goldilocks zone” where yields are neither too high nor too low. Too high, and mortgages dry up; too low, and profits evaporate like mist in the sun.








