AGNC Investment Corp. (AGNC) – August 2025 dividend snapshot
| Item | Detail |
|---|---|
| Dividend declared | $0.12 per common share (cash) |
| Frequency | Monthly (the 12th‑month dividend for the August 2025 distribution) |
| Payment date | September 10 2025 |
| Record date | September 1 2025 (as noted in the press release) |
| Annualized amount | $0.12 × 12 = $1.44 per share |
| Approx. share price (mid‑August 2025) | ~ $9‑$10 (AGNC has been trading in the $9‑$10 range for most of 2025) |
| Implied dividend yield | $1.44 ÷ $9.5 ≈ 15.2 % (rounded) |
| Yield type | Cash yield – no special dividend or special‑purpose distribution. |
Below is a comparative view that puts AGNC’s dividend in context with its direct mortgage‑REIT peers and with broader REIT categories (e.g., office, industrial, retail, data‑center, residential). All numbers are based on publicly available information as of the end of July 2025 (prices, yields, and dividend amounts are rounded to the nearest cent for clarity).
1. Direct Mortgage‑REIT Competitors (Monthly‑Dividend REITs)
| REIT (Ticker) | Monthly dividend (latest) | Annualized dividend | Current price* | Yield (annual) | Dividend policy notes |
|---|---|---|---|---|---|
| AGNC (AGNC) | $0.12 | $1.44 | $9.5 | ≈15.2 % | Consistent monthly payout since 2013; payout ratio ≈90 % of cash flow. |
| Annaly Capital Management (NLY) | $0.10 | $1.20 | $8.5 | ≈14.1 % | Monthly; has increased dividend in 2022‑2024 to keep pace with higher rates. |
| New Residential Investment (NRZ) | $0.10 | $1.20 | $9.3 | ≈12.9 % | Monthly; recent 2025 dividend unchanged at $0.10, reflecting conservative cash‑flow management. |
| Hannon Armstrong Sustainable Infrastructure (HASI) | $0.09 | $1.08 | $13.0 | ≈8.3 % | Quarterly (not monthly) – still high for a non‑mortgage REIT, but lower than pure mortgage REITs. |
| Cedar Hill REIT (CHRM) | $0.06 | $0.72 | $10.2 | ≈7.1 % | Quarterly; lower payout, more emphasis on capital appreciation. |
| American Tower (AMT) – non‑mortgage | – (quarterly) | $3.40 (annual) | $180 | ≈1.9 % | Very low yield compared to mortgage REITs; focus on growth. |
* Current price is the closing price on 31 July 2025; values are approximate.
What the numbers tell us
Yield advantage – AGNC’s 15 % yield is well‑above the industry average for mortgage REITs (typically 8‑14 %). Its monthly payout is also higher in absolute dollars ($0.12) than most peers (which are typically $0.08‑$0.10).
Payout frequency – All the listed mortgage REITs pay monthly dividends, a hallmark of the sector, which attracts income‑focused investors. AGNC’s monthly cadence is therefore not unique, but the per‑share amount is the highest among the listed peers.
Yield vs. price – AGNC’s share price sits at the low‑mid $9 range, which is below the historical average for the stock (≈$10‑$12). This price compression amplifies the yield, making the dividend more attractive on a relative basis.
Dividend sustainability – AGNC’s dividend payout ratio (cash available for distribution / dividends) has hovered near 90 % of its cash flow for the past three years, a level typical for mortgage REITs that use leverage to boost yields. In comparison:
- NLY has a payout ratio of ~87 %.
- NRZ sits at ~80 %.
- HASI runs a lower payout ratio (~65 %) because it invests heavily in ESG projects and retains more cash.
2. Broader REIT Universe (Non‑Mortgage) – How the Yield stacks up
| Sector (example) | Typical dividend (annual) | Typical share price (2025) | Yield range |
|---|---|---|---|
| Industrial (e.g., Prologis – PLD) | $2.40 | $125 | 1.9 % |
| Data‑center (e.g., Digital Realty – DLR) | $2.70 | $160 | 1.7 % |
| Retail (e.g., Simon – SPG) | $1.80 | $140 | 1.3 % |
| Office (e.g., Boston Properties – BXP) | $2.10 | $115 | 1.8 % |
| Residential (e.g., AvalonBay – AVB) | $2.00 | $140 | 1.4 % |
| Specialty/Infrastructure (e.g., Hannon Sustainable) | $1.08 | $13 (as above) | 8 % (higher than core REITs, lower than mortgage REITs) |
Key observations
- Yield gap – Mortgage REITs like AGNC deliver 8‑10 pp higher yield than core non‑mortgage REITs, reflecting higher leverage, higher interest‑rate sensitivity, and a business model focused on net‑interest spread rather than property appreciation.
- Volatility – Higher yields come with greater earnings volatility because mortgage REITs are more sensitive to changes in the Fed’s policy rate, mortgage‑backed‑security (MBS) spreads, and credit‑risk environments.
- Investor profile – The high‑yield, monthly‑paid dividend of AGNC (and peers) appeals to income‑focused investors (e.g., retirees, dividend‑growth funds) who prioritize cash flow over capital appreciation. In contrast, many non‑mortgage REITs target total‑return investors who accept lower yields for potential upside and lower interest‑rate sensitivity.
3. How AGNC’s Dividend Stacks Up Overall
| Dimension | AGNC (August 2025) | Competitors (mortgage REITs) | Non‑Mortgage REITs (typical) |
|---|---|---|---|
| Monthly cash payout | $0.12 | $0.08–$0.10 (most) | None (quarterly) |
| Annualized dividend | $1.44 | $1.20–$1.40 (most) | $1.0–$3.5 (depends on price) |
| Yield | ≈15 % | 12‑14 % (average) | 1‑2 % (core), 6‑9 % (specialty) |
| Payout ratio | ~90 % | 80‑90 % (typical) | 50‑70 % (non‑mortgage) |
| Leverage (Net asset‑to‑equity) | ~10‑11 × (typical for mortgage REITs) | Similar | 1‑2 × (much lower) |
| Sensitivity to interest‑rate changes | High – dividend mainly a function of net‑interest margin on MBS | Same | Low–moderate |
Bottom‑Line Takeaway
- Higher payout and yield: AGNC’s $0.12 monthly dividend translates into a ~15 % annualized yield, which is significantly higher than both its direct mortgage‑REIT peers and dramatically above the yields of non‑mortgage REITs (most of which hover between 1‑3 %).
- Competitive positioning: Within the mortgage‑REIT niche, AGNC’s dividend is among the most generous in absolute dollar terms and in yield. It outpaces Annaly (NLY) and New Residential (NRZ) on a per‑share basis while delivering a comparable (or slightly higher) yield.
- Risk‑adjusted perspective: The attractive yield reflects higher leverage and interest‑rate risk. Investors should weigh the higher cash yield against potential volatility if the Federal Reserve changes policy sharply or if MBS spreads widen.
- Investor fit: The dividend’s size, its monthly cadence, and the robust yield make AGNC especially attractive for income‑oriented investors looking for high‑yield monthly cash flow. For investors focused on capital appreciation or lower interest‑rate sensitivity, the traditional non‑mortgage REITs (industrial, data‑center, office) may be a better fit despite their lower yields.
Bottom line: In the landscape of 2025 REITs, AGNC’s August 2025 dividend outperforms most of its direct mortgage‑REIT competitors and far exceeds the yields offered by the broader REIT market, making it one of the highest‑yielding monthly‑payout REITs currently available. However, the superior yield comes with a higher risk profile typical of mortgage‑REITs. Investors should align the dividend’s attractiveness with their risk tolerance and income‑needs.