Agnc Investment Dividends: Payout Patterns And Frequency

AGNC Investment Corp (AGNC) has a history of providing dividends to its investors, with a recent dividend payout of $0.12 per share declared on May 8, 2024. The company's dividend yield and payout have fluctuated over the years, with a notable cut in dividends during the COVID-19 crisis. AGNC's dividends are paid quarterly, and the frequency is used to calculate the annualized forward dividend yield. The company's common stock dividend history dates back to its initial public offering (IPO) in May 2008.

AGNC Investment Corp's dividend history

AGNC Investment Corp (AGNC) has a long history of paying dividends to its shareholders. The company's dividend history dates back to at least 2008, and it has consistently made dividend payments over the years.

In 2017, AGNC Investment Corp. redeemed all the issued and outstanding shares of its Series A Cumulative Redeemable Preferred Stock, and the stock ceased trading on the Nasdaq Global Select Market. A similar move was made in 2019 with its Series B Cumulative Redeemable Preferred Stock.

A review of AGNC's dividend history from 2019 to 2024 reveals regular dividend payments, with some months having multiple payment dates. For instance, in November 2019, AGNC paid dividends on the 11th, 27th, and 29th. This trend of multiple payments in a single month continued into 2020, with dividends paid in January, February, March, April, and May, among other months.

The company's dividend history for 2023 and the first half of 2024 shows a consistent pattern of monthly dividend payments. For example, in January 2023, dividends were paid on the 10th and 30th, and in February, a dividend was paid on the 27th, with another on the 28th. This pattern continued through to April and May, with two payments made each month. June and July of 2023 also saw dividend payments, with a single payment made each month.

Dividend capture strategy

The dividend capture strategy is a popular strategy among day traders who are looking for an income-focused approach to stock trading. This strategy involves buying and selling shares frequently, holding them for a very short period of time, just long enough to collect the dividend. The underlying stock could sometimes be held for only a single day.

Dividends are usually paid out annually or quarterly, but some companies pay dividends monthly. Those employing the dividend capture strategy tend to prefer larger annual dividend payouts, as it is generally easier to make the strategy profitable with larger dividend amounts.

At the core of the dividend capture strategy are four key dates:

• Declaration date: The board of directors announces dividend payment. This is the date when the company declares its dividend and occurs well in advance of the payment.
• Ex-dividend date: The security starts trading without the dividend. The day before the ex-dividend date is the last day to buy a stock and be eligible to receive the dividend payment. The stock price often drops in accordance with the declared dividend amount on this date.
• Date of record: The day a company records which shareholders are eligible to receive the dividend.
• Pay date: The day the company issues dividend payments.

The dividend capture strategy is quite simple. An investor purchases the stock prior to the ex-dividend date and then sells it on the ex-dividend date or any time after that. If the share price falls after the dividend announcement, the investor may wait until the price recovers to its original value.

Theoretically, this strategy shouldn't work. If markets were perfect, the dividend amount would be reflected in the share price until the ex-dividend date, when the stock price would fall by the dividend amount. However, markets don't always operate with such precision, and a trader can often capture a substantial portion of the dividend despite selling the stock at a slight loss following the ex-dividend date.

For example, consider a stock trading at $20 per share, paying a $1 dividend. On the ex-dividend date, the stock price is expected to drop to $19. However, it may only fall to $19.50, allowing a trader to realise a net profit of $0.50, capturing half the dividend in profit.

The dividend capture strategy offers continuous profit opportunities, as there is almost always a stock paying dividends every trading day. This strategy is particularly attractive to investors seeking regular income from their holdings.

However, it's important to note that this strategy also comes with certain drawbacks and risks:

• Negative Price Adjustment: Companies negatively adjust the stock's price on the ex-dividend date to reflect the upcoming payout. This makes capturing dividends more challenging than it may initially seem, as precise timing is required to make a profit.
• Loss of Favourable Tax Treatment: "Qualified dividends" are eligible for capital gains tax treatment of 15%. However, to qualify, the underlying stock must be held for at least 60 days during the 121-day period before the ex-dividend date, which is rarely feasible with this strategy.
• Market Action: The stock price can be influenced by external market forces, company news, and other factors. While the dividend capture strategist hopes that the price adjustment is less than the dividend, these factors can sometimes push the price down further, resulting in a capital loss.
• Brokerage Fees: This strategy involves frequent trading, which can result in significant brokerage fees. Using a full-commission broker or trading on margin can quickly erode any potential profits.

In conclusion, while the dividend capture strategy offers the potential for regular income, it also carries risks and transaction costs that can offset any gains. Investors considering this strategy should carefully research factors such as brokerage costs and taxes before implementing it.

Dividend yield calculation

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is calculated by dividing the annual dividends per share by the current share price. For example, if a company pays out $1 in dividends per share and its current share price is $20, the dividend yield would be 5%.

Dividend yield is an important metric for investors as it helps them understand the overall value of a stock and how much money they can expect to receive per dollar invested. It is also useful for comparing different stocks to determine which offers the best value in terms of dividends.

It is important to note that dividend yield is constantly changing as it is influenced by both the dividend payout and the company's share price. A high dividend yield may not always be a good indicator of a strong company, as it could be the result of a declining share price. Conversely, a low dividend yield may not necessarily be a bad sign, as the company may be reinvesting profits into growth.

AGNC Investment Corp, for example, has a forward dividend yield of 13.78% as of July 15, 2024. This means that for every dollar invested in the company, investors can expect to receive $0.1378 in dividends.

To calculate the dividend yield for AGNC Investment Corp, you would take the annual dividend per share and divide it by the current share price. As of July 31, 2024, AGNC Investment Corp's annual dividend per share was $0.12, and its share price was $10.36. Therefore, the dividend yield would be 1.16% ($0.12 / $10.36 x 100).

It is worth noting that dividends can be paid out in different forms, such as cash, additional shares, or other property, but the focus of this calculation is on cash dividends.

Dividend payout history

AGNC Investment Corp (AGNC) has a history of paying dividends to its shareholders. The company's dividend history can be traced back to 2008, with fluctuations in dividend amounts and frequencies over the years. Here is an overview of AGNC's dividend payout history:

AGNC Investment Corp has a long history of dividend payouts, with the company's common stock dividend history dating back to 2008. While there have been fluctuations, the company has consistently paid dividends to its shareholders.

In 2017, AGNC Investment Corp. redeemed all issued and outstanding shares of its Series A Cumulative Redeemable Preferred Stock, which ceased trading on the Nasdaq Global Select Market. Similarly, in 2019, the company redeemed all outstanding shares of its Series B Cumulative Redeemable Preferred Stock, which also ceased trading on the Nasdaq Global Select Market.

The company's dividend payout history for 2024 includes the following dates: May 31, June 11, April 10, April 29, April 30, March 13, March 27, March 29, February 28, February 29, March 11, January 10, January 30, and January 31.

Looking back at 2023, AGNC Investment Corp also paid dividends on the following dates: November 8, November 29, November 30, December 11, October 11, October 30, October 31, November 9, September 13, September 28, September 29, October 11, August 30, August 31, September 12, July 12, July 28, July 31, June 12, June 29, June 30, July 12, May 10, May 30, May 31, April 12, April 27, April 28, March 10, March 30, March 31, April 11, February 27, February 28, January 11, January 30, and January 31.

The company's commitment to returning value to its shareholders through dividend payments is evident in its consistent dividend payout history.

Dividend stock news

AGNC Investment Corp (AGNC) Dividend Update

15 July 2024: AGNC Investment Corp (AGNC) has announced its next dividend payout amount of $0.12 per share, with an ex-dividend date of 31 July 2024. This dividend payout reflects a yield of 13.78%.

Recent Dividend History

AGNC Investment Corp has a strong track record of dividend payments, with payouts declared on the following dates in 2024:

• May 31
• June 11
• April 10
• April 29
• April 30
• March 13
• March 27
• March 29
• February 28
• February 29
• March 11
• January 10
• January 30
• January 31
• December 13, 2023
• December 28, 2023
• December 29, 2023
• January 10, 2024

Dividend Strategy

For investors seeking to maximise their dividend capture, a strategy could be to buy AGNC shares one day before the ex-dividend date and sell when the price recovers.

Market Outlook

AGNC Investment Corp's dividend yield is currently rated as 'Overweight' by sell-side analysts, indicating positive market sentiment. The company's dividend CAGR over the last 3 years is also impressive, at 112%.

Disclaimer

Please note that this information is not real-time and may be delayed. Investors are advised to verify the accuracy of the data before making any investment decisions.

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