Agnc

[billyjoe]

I bought AGNC for its crazy high dividend, currently 20%, held for a couple years, reinvesting into shares, then sold for a nice profit scared it would tank. Hovering between 28-31 for over 2 years it still shows no sign of weakening.

Any holders here?

-----------billy

[em26jamie]

Looks like something great to stash away in an IRA. The lowest it got in 2008 was just below $15 and the same for 2009. It seems to be holding up up very well this year. Just reinvesting the dividends in it could do you some real good whenever housing starts to go up again.

[Skrumpa]

x

I'm still holding.....

Last year I just sold my “free and clear” rental property in Orange County CA .

After all the fees and taxes I got a check for $300,000.

The rent I was getting was $2,100 per month

However I paid the the water at $80 per month
Property taxes at $200 month
Fire Insurance at $100 month
Repairs at $50 month ( stove, dishwasher, AC unit, roof, paint, water heater, carpet, etc )

So I really got about $1,670 per month in my pocket each month and I have to pay taxes on it each year.

So I took that $300,000 and put all in AGNC at about $28.00 per share back in September of 2011

I was able to get 10,700 shares. ( Right now it’s $29.08 per share )

So 10,700 shares x $1.4 dividend gets me $14,980 every 3 months

This comes out to $4,993 per month or $59,900 per year


So $4,993 per month with ANGC vs. $1,670 per month with the rental

Plus the rental had vacancies.

Both can go up or down in value.

I can sell my ANGC with a click of a mouse.

The rental cost me $20,000 in commission and fees to sell


Drawbacks to AGNC are it can go down in stock price as well and the dividend amount could go down.


I will keep buying and rolling, adding shares every month till I reach my goal of 30,000 shares.

30,000 shares would give me $14,000 per month in dividends

[billyjoe]

Skrumpa,

Good setup you've got there. I used to check each time the divy was paid to see if it was for real. Maybe as an added insurance policy you could divert a % of the divies into another very stable company with a lower rate, like PM or MO. Were your property taxes only $200/month? That's less than I pay and my house isn't worth 300 K. I'm impressed , but that's a lot of $$ to put in any one stock.


------------------billy

[em26jamie]

My house is worth less than half that and I pay $663/mo in taxes and insurance.

I've bought AGNC for my kids' accounts because it's a high dividend stock whose price doesn't move that much throughout the year. I was stuck between AGNC and NLY, but ultimately I chose AGNC. My kids are only 3 years old and 6 months old so by the time college rolls around, they should have some good money on hand.

[Skrumpa]

I found the best time to buy AGNC is about 20 to 40 days before the the X-div date. There is talk of a SPO ( Secondary Public Offering ) coming up soon. This might cause the stock to go down just a bit.... but thats another buying op !!!!

If this continues to work I have 2 other rentals I will sell in the next few years and then I will be totally out of rental real estate and should sleep a lot better.

I've been doing residential rentals for 27 years, but with all the evictions, broken windows and people trying to kill me ( I had a gun pulled on me about 2 years ago in a back alley ) ...I'm getting out!!!

[Skrumpa]

AGNC hit an all time high today at $30.88.....

Currenty I 'm making more money this quarter from the stock price increase rather from the $1.25 per share divy.


The next ex div. date is 3/5/2012 . Current divy is $1.25 down from $1.40.

[Skrumpa]

Pay Day is on 4/27/2012.

Looking to roll some of those gains into more shares of ANGC

[em26jamie]

Same here.

[Skrumpa]

AGNC is over $32 right now ( $32.08 ) as I type this for a new all time high.

The next x-div date is around June 29ish. Exact date has not been reported yet.

Many stocks are going down right now. AGNC is making new all time highs and paying a $1.25 per share dividend each quarter.

I've been adding shares all the way up and rolling the dividends in to more and more shares.

One day this party will end.... but in the mean time.... PARTY ON


The 2 other good high Dividend REITs are: IVR and MTGE

[Skrumpa]

x

AGNC update......

Xdate is 6/19 - yep, next week

Dividend is $1.25 per share like last time

Hit a new all time today at $33.14

Up 25 cents to ( .76% ) in after hour trading.

I'm looking to add more shares this week and next week

Should run up till xdate like always

[em26jamie]

I'll be reinvesting the dividends when they come too. Just holding and reinvesting the dividends. I can't add other than the dividends until Sept anyway.

[billyjoe]

em26jamie,
Good job! Sorry I chickened out and bailed on AGNC a couple years ago. Did hold long enough to collect divs. 4X.

--------------billy

[Skrumpa]

It just hit a new high today of $35 bucks......

It's up 24% Year to Date. Add in another 15%+ per year for the dividend and you got a winner.

There should be a SPO any day now and that's when I add more shares !!!!

[mrmarket]

This is a great stock. As long as interest rates stay where they are, it will print money.