10 Most Undervalued REIT Stocks to Invest In Now

6. AGNC Investment Corp. (NASDAQ:AGNC)

Number of Hedge Fund Holders: 18

Forward P/E: 6.36

AGNC Investment Corp. (NASDAQ:AGNC) is an internally managed mortgage REIT founded in 2008. The firm is a leading investor in Agency residential mortgage-backed securities (Agency MBS) which are guaranteed by a US government-sponsored enterprise. It also invests in other mortgage and mortgage-related securities including non-Agency residential and commercial MBS, credit risk transfer securities, and assets related to the housing, mortgage, or real estate markets not guaranteed by a government agency.

AGNC Investment Corp. (NASDAQ:AGNC) focuses on Agency MBS which has government support, substantial yield opportunity, and a highly liquid market to offer. Hence, the REIT provides a liquid and efficient way to gain exposure to this impactful asset class. While interest rate volatility eased amidst an accommodative monetary policy during 2024, the REIT generated a positive economic return of 13.2% in the year thereby showing its ability to generate strong investment returns in environments where Agency MBS spreads tend to be wide and stable. In the view of management, the favorable environment for Agency MBS will persist in the current year.

Investors should also note that the company’s dividend-driven total stock return since its IPO in 2008 has surpassed those of comparable indices and other yield-oriented alternatives. With more than $13 billion of common stock dividends paid since inception, AGNC Investment Corp. (NASDAQ:AGNC) is a source of substantial monthly dividend income.