Originally Posted by SkinnyGoomba
It looks like a trap to me, declining share price but decent dividends.
Yeah, I am not sure I understand this move.
ARR pays a higher yield, but ONLY because the share price has fallen. So unless you bought the shares today, you what...traded a 10% decline in the value of the shares for an extra % of *annual* yield? On price alone, AGNC has outperformed ARR in every period I clicked on.
Not sure what the benefit of monthly dividends are either...its not like you need steady income from them (hopefully you are holding this kind of stuff in a tax-advantaged account since REIT dividends are taxed as full income).
The AGNC train can't go on forever and they are gonna get squeezed. They could still be profitable but 15-20% yields are clearly not sustainable in the long run. They still seem to be the best risky option in this arena though.