AGNC Investment Corp.'s 13.1% forward dividend yield remains covered for now, but its cushion is thinning. The mortgage REIT's net spread and dollar roll income per share fell from $3.11 in 2022 to $1.50 in 2025, while its annual dividend held at $1.44 per share. Its net interest spread narrowed to 1.81% in 2025 from 3.08% in 2023, pressured by Federal Reserve rate cuts that reduced the value of older mortgages and locked-in swaps. Future rate hikes could further squeeze borrowing costs and the housing market, making the dividend's long-term sustainability uncertain.
AGNC Investment Corp.Net spread and dollar roll income per share halved, net interest spread narrowed, and dividend sustainability is uncertain due to Fed rate cuts and potential future hikes.