[quote=livinincali]AGNC is a high leverage play. If they are right about their investments it should have a decent return, if they’re wrong it’s a zero. It’s at least a 10 to 1 leverage play. They have 51 billion in liabilities, 54 billion in assets and 2 billion in cash. If the value of their assets drops by 10% they are bankrupt.
They also don’t have a long term history of big dividends either. Cash flow in 2009 was 118 million, 2010 was 288 million and 2011 was 770 million. So just 3 years ago the dividend was 1/7th of today’s and their return of investment is around 1%. 770 million cash flow on assets of 54 billion.[/quote]
I agree. Like I said, it’s my RE play first and foremost. Dividend is second. It’s a way to have “rentals” without having to buy physical rental.
