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Fill Your Christmas Stockings With These High Yielders

Published Thu, 24 Dec 2020 08:35:00 -0500 on Seeking Alpha

Seeking AlphaDividend IdeasFill Your Christmas Stockings With These High YieldersDec. 24, 2020 8:35 AM ET|| Includes: AGNC, AGNCM, AGNCN, AGNCO, AGNCP, GEO, Oby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryToday we share our Christmas shopping list.
2020 was a challenging year, Make sure you build up your income stream for 2021.
Merry Christmas from the HDO family to all of our readers!
Co-produced with Beyond Saving
Merry Christmas from High Dividend Opportunities. Every week, we provide members with a "shopping list" of picks that HDO authors see as the best deals in the market.
With Christmas coming up, we know a lot of you are going to be doing some last-minute shopping. What is the gift that keeps giving? Dividend investments!
So here's a look at our best picks for Christmas to help build your income stream going into 2021.

Pick #1: AGNC common shares
AGNC Investment Corp (AGNC) - Yield 9.3%

It's important to be appreciative of the gifts that we receive. In 2020, the Federal Reserve combined forces with the stock market to give us an excellent gift: Zero interest rate policy combined with a large indiscriminate sell-off of all mREITs.
As a result of collapsing borrowing costs, AGNC has seen their "net interest spread" increase substantially.

Source: AGNC Q3 2020 Presentation
Net interest spread is crucial because this is the difference between the rate that AGNC earns on their investments and the rate they pay to borrow funds. A higher spread directly leads to higher returns. This ultimately leads to higher dividends for you.
Even as earnings conditions are absolutely ideal for agency MBS, AGNC trades at a 5%-plus discount to book value. So buy some shares and send Chairman Powell a Christmas card to thank him for the gift.
This is way better than the mystery chocolate box your Secret Santa gave you at the company... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AMERICAN CAPITAL AGENCY 15.64   0.0 -1.54 1.92 12.21
GEO GROUP 18.35   14.1 1.30 1.92 10.56
REALTY INCOME 74.49   56.9 1.31 2.72 3.69


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