4-Star Dividend Stocks Poised to Outperform: American Capital Agency

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT American Capital Agency (NAS: AGNC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at American Capital Agency and see what CAPS investors are saying about the stock right now.

American Capital Agencyfacts

Headquarters (founded)

Bethesda, Md. (2008)

Market Cap

$10.5 billion

Industry

Mortgage REIT

Trailing-12-Month Revenue

$812.7 million

Management

Chairman/CEO Malon Wilkus
President/CIO Gary Kain

Return on Equity (average, past 3 years)

20.2%

Cash / Debt

$9.6 billion / $89.1 billion

Dividend Yield

15.8%

Competitors

Anworth Mortgage Asset
Capstead Mortgage
MFA Financial


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 850 members who have rated American Capital Agency believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, adamlevy, succinctly summed up the bull case for our community:

QE3 won't last forever. It has effectively boosted housing prices and lowered default numbers. In turn, [American Capital Agency's] assets have higher book value. The company recently announced a share buyback for when shares fall below book value. Currently, trading at a price 5% below book value should present investors with a chance to get in near the floor.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, American Capital Agency may not be your top choice.

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The article 4-Star Dividend Stocks Poised to Outperform: American Capital Agency originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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