Even Jim Cramer is skeptical about AGNC.

Jim Cramer is now a critic of American Capital Agency Corp. (AGNC).

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by Jason Smith | March 28th  |  Filed in: Dividend News

MORTGAGE REITS METRICS

Avg. Market Cap:

$1.3B

Avg. P/E Ratio:

10.9

Avg. Div Yield:

9.8%

Following comments by “Mad Money” host Jim Cramer about the group, the Mortage Investment Stocks is trading lower by 0.1% today.

Surprisingly, American Capital Agency (AGNC) is up 1% after Cramer questioned how the company can feature such a high yield. Shares of American Capital Agency currently yield a whopping 19.3% based on past distributions. Shares of Annaly Capital Management (NLY) are down about half a percent despite Cramer saying that is the one stock in the group that he recommends. “I feel real good about that one,” Cramer said in reference to Annaly.

Among other high-yielding mortgage REITs, Northstar Realty Finance (NRF) is up 2%. Those units now yield 8% based on past distributions. PennyMac Mortgage (PMT), with its 9.2% yield based on past distributions, is up 1%. Anworth Mortgage Asset (ANH), with a yield of 12.3% based on past distributions, is down 1% while Capstead Mortgage (CMO), which also sports a 12.3% yield based on past distributions, is down half a percent.

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Link to original article: http://www.tickerspy.com/newswire/?p=4245

AGNC has a whopping dividend, but diminishing earning power and a weak balance sheet.

Disclosure: I don’t own AGNC.

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Published in: on March 28, 2011 at 12:31 pm  Leave a Comment  

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