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AGNC Investment's Q3 2020 Income Statement And Earnings Projection - Part 2 (Includes Dividend Sustainability Metric + Recommendation)
Published Mon, 19 Oct 2020 09:30:16 -0400 on Seeking Alpha
Seeking AlphaREITsAGNC Investment's Q3 2020 Income Statement And Earnings Projection - Part 2 (Includes Dividend Sustainability Metric + Recommendation)Oct. 19, 2020 9:30 AM ET|| About: AGNC Investment Corp. (AGNC), Includes: AGNCM, AGNCN, AGNCO, AGNCP, AI, AI.PB, AI.PC, AIC, AIW, ANH, ANH.PA, ANH.PB, ANH.PC, ARR, ARR.PC, CHMI, CHMI.PA, CHMI.PB, DX, DX.PB, DX.PC, GPMT, IVR, IVR.PA, IVR.PB, IVR.PC, MITT, MITT.PA, MITT.PB, MITT.PC, MORT, NLY, NLY.PD, NLY.PF, NLY.PG, NLY.PI, NRZ, NRZ.PA, NRZ.PB, NRZ.PC, NYMT, NYMTM, NYMTN, NYMTO, NYMTP, ORC, REM, REML, TWO, TWO.PA, TWO.PB, TWO.PC, TWO.PD, TWO.PEby: Scott KennedyScott Kennedy The REIT ForumThe #1 REIT Service Measured By Total ReturnsSummaryI am projecting AGNC will report a modest gain regarding the company’s derivative instruments and other securities for the third quarter of 2020.
Interest rate payer swaps and U.S. Treasury securities across most tenors/maturities experienced a minor-modest increase in rates/yields during the quarter.
The recent decline in short-term rates negatively impacted AGNC’s quarterly net periodic interest expense regarding its interest rate swaps. This trend has partially mitigated the notable decrease in borrowing costs.
My projection for AGNC’s net income, net spread + dollar roll income, and EPS for the third quarter of 2020 is stated in the “Conclusions Drawn” section of the article.
I believe AGNC remains attractively priced due to the fact sector stock prices are still notably below estimated CURRENT BV and earnings should continue improving via the steepened yield curve.
Author’s Note: PART 2 of this article is a continuation from PART 1 which was discussed in a previous publication. Please see PART 1 of this article for a detailed projection of AGNC Investment Corp.’s (AGNC) income statement (technically speaking, the company’s “consolidated statement of comprehensive income”) for the third quarter of 2020 regarding the following accounts: 1) interest... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ORCHID ISLAND CAPITAL | 5.58 | 0.0 | -0.29 | 0.96 | 17.75 | |||||||
| ARLINGTON ASSET INVESTMENT | 5.55 | 0.0 | -1.21 | 0.90 | 16.58 | |||||||
| CHERRY HILL MORTGAGE INVESTMENT | 13.52 | 0.0 | -3.91 | 1.60 | 14.40 | |||||||
| ANNALY CAPITAL MANAGEMENT | 8.60 | 0.0 | -3.32 | 1.20 | 14.00 | |||||||
| NEW RESIDENTIAL INVESTMENT | 14.98 | 18.0 | 0.83 | 2.00 | 13.28 | |||||||
| ANWORTH MORTGAGE ASSET | 3.39 | 0.0 | -0.98 | 0.44 | 13.17 | |||||||
| NEW YORK MORTGAGE TRUST | 6.14 | 12.0 | 0.51 | 0.80 | 12.74 | |||||||
| DYNEX CAPITAL | 15.16 | 0.0 | -10.26 | 1.80 | 12.06 | |||||||
| ARMOUR RESIDENTIAL REIT | 17.26 | 0.0 | -9.30 | 2.04 | 12.03 | |||||||
| TWO HARBORS INVESTMENT | 13.28 | 0.0 | -2.81 | 1.60 | 12.02 | |||||||
| INVESCO MORTGAGE CAPITAL | 15.18 | 0.0 | -1.01 | 1.80 | 11.80 | |||||||
| AG MORTGAGE INVESTMENT TRUST | 17.47 | 6.1 | 2.87 | 1.90 | 10.89 | |||||||
| ISHARES FTSE NAREIT MORTG PLUS CAPPED INDEX FUND | 41.97 | 0.0 | 0.00 | 0.00 | 0.00 |