From The Motley Fool · Leo Sun · · 50s
AGNC Dividend Resilience Through Rate Shocks
AGNC maintains 16.2% dividend despite 38% book value drop in 2022.
In brief
AGNC maintains 16.2% dividend despite 38% book value drop in 2022. AGNC kept paying dividends after book value fell 38% in 2022 despite rate shocks. Originally reported by The Motley Fool.
AGNC's dividend history
AGNC pays 16.2% dividend yield continuously since its 2008 IPO.
Rate shocks and book value
AGNC weathered three rate shocks in 2013, 2018, and 2022 with book value falling 38% in 2022.
How mREITs work
mREITs like AGNC borrow short-term to buy longer-term mortgage-backed securities.
Book value decline
AGNC's book value per share dropped from $15.75 in 2021 to $8.88 in 2025.
2022 rate shock impact
Fed rate hikes in 2022 caused AGNC's book value to fall 38% while dividends stayed at $1.44.
2026 dividend challenge
AGNC's book value dropped to $7.13 by end of 2026 with dividends barely covered.
What to remember
AGNC kept paying dividends after book value fell 38% in 2022 despite rate shocks.
