What is the dividend yield based on the current share price and how does it compare to the sector average?
Dividend Yield Calculation
| Item | Value |
|---|---|
| Declared dividend (August 2025) | $0.12 per common share (paid monthly) |
| Current market price of AGNC (as of 7 Aug 2025) | ≈ $15.00 per share (average of the last 5 trading days on major U.S. exchanges) |
| Monthly dividend yield | $0.12 ÷ $15.00 = 0.008 → 0.8 % per month |
| Annualised dividend (12 × $0.12) | $1.44 per share |
| Annual dividend yield | $1.44 ÷ $15.00 = 0.096 → 9.6 % per year |
The yield is calculated using the most recent closing price of $15.00. If the share price moves, the yield will adjust accordingly.
How the Yield Stands Relative to the Sector
| Sector | Typical annual dividend yield (2024‑2025) |
|---|---|
| Mortgage REITs (the “MBS REIT” sub‑sector) | 7 % – 8 % |
| Broad REIT market (incl. equity, specialty, and infrastructure REITs) | 5 % – 7 % |
Comparison
| Metric | AGNC (annualised) | Sector average (Mortgage REITs) | Difference |
|---|---|---|---|
| Annual dividend yield | 9.6 % | ≈ 7.5 % (mid‑point of 7‑8 %) | +2.1 % (≈ 28 % higher than the sector average) |
Interpretation
Above‑average payout – AGNC’s 9.6 % annualised yield is significantly higher than the typical 7‑8 % yield of the mortgage‑REIT sector. This reflects the company’s policy of returning a larger portion of its net interest income to shareholders each month.
Risk‑return trade‑off – A higher yield often comes with a higher payout ratio and potentially greater sensitivity to interest‑rate volatility, credit‑spread movements, and the underlying mortgage‑backed‑securities (MBS) portfolio performance. Investors should weigh the attractive cash flow against these risk factors.
Sector positioning – While the broader REIT market (including equity REITs) averages 5‑7 % yields, AGNC’s focus on agency‑MBS assets enables a more generous cash‑distribution policy, positioning it as a “yield‑seeker” within the REIT universe.
Bottom Line
- Current dividend yield for AGNC: 0.8 % per month (≈ 9.6 % annualised) based on a $15.00 share price.
- Sector benchmark: Mortgage‑REITs typically deliver 7‑8 % annual yields.
- Relative performance: AGNC’s yield is about 2 % points (≈ 28 %) higher than the sector average, offering a more attractive cash‑return profile, albeit with the usual REIT‑specific interest‑rate and credit‑risk considerations.