American Capital Agency Corp. (AGNC), Annaly Capital Management, Inc. (NLY): A Few Reasons to Buy This High Yielding Stock

Page 2 of 2

The above ratios reveal that American Capital Agency has the highest ability to maintain its current dividends. It also means American Capital has the highest ability to sustain negative impacts from any disruptions made by the Fed before the company’s dividend is threatened.

Conclusion

American Capital Agency, along with its peers, reported its worst performance at the end of the last quarter. However, American Capital has adjusted its investment portfolio to better suit the upcoming challenges. Therefore, investors don’t need to be worried anymore. Besides, it offers the best dividend sustainability among the pure-play mREITs. Further, Annaly Capital Management, Inc. (NYSE:NLY) and ARMOUR Residential have not acted to re-position their investment portfolios, leaving investors with little options but to invest in American Capital Agency.

The article A Few Reasons to Buy This High Yielding Stock originally appeared on Fool.com and is written by Adnan Khan.

Adnan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2