Is It Buy Or Sell For American Capital Agency Corp. (NASDAQ:AGNC)?


Dallas, Texas 12/11/2013 (FINANCIALSTRENDS) – There are many industry analysts and banking agencies that are creating a confusing picture around the American Capital Agency Corp. (NASDAQ:AGNC) stock. Some of them such as Goldman Sachs are giving a sell rating on this stock and some of them such as Gary kain are giving a buy rating on this stock.  The American Capital Agency Corp. (NASDAQ:AGNC) is a fixed rating agency and the main objective of the company is to preserve it net asset value and side by side generating attractive returns for the distribution to its shareholders by giving them quarterly dividends with the help of its net interest income.

Another aim for the American Capital Agency Corp. is to grow its book value. It is a majority owned subsidiary of American Capital and the current annual dividend paid by them is 15.83%. If latest statics’ are to be believed the long term American Capital Agency Corp. performance seems to be quite good and it is consistently distributing dividends since its IPO inception in 2008.

Rate of return on the investment

The total return on this stock is the total stock price appreciation including the dividend re-investment which is almost at the stock price on each ex-date. The American Capital Agency Corp. Comps Index is analyzed by different asset management corporations such as An worth Mortgage Asset Corporation , Armour Residential REIT Inc., Cap stead Mortgage Corp., CYS Investments Inc. The overall performance of this stock has always been appreciated by these financial institutions and the future also seems to be quite bright for this stock.

The overall price movement of this stock seems to be working in a dedicated as narrow range but with the increase in its earnings one can expect a significant price rise in the stock value and dividend payout.