AGNC owns a large portfolio of mortgage-backed securities, mainly those backed by U.S. agencies and government-sponsored enterprises. It earns interest on those assets and uses short-term borrowing and hedges to finance and manage the portfolio. What reaches common shareholders depends on the interest left after funding, hedging, operating costs and preferred-share obligations. Agency backing helps with borrower credit risk, but mortgage prices and financing still matter.
Business
REIT
Listing
AGNC · XNAS
Reporting period
2026-06-30
Dividend schedule
Monthly
How the business works
AGNC's capacity to make distributions depends principally on recurring net spread and dollar roll income, available liquidity, taxable income, and access to secured financing. Agency mortgage-backed securities generate interest income; AGNC then subtracts the cost of repurchase-agreement financing, hedges, management expenses, and other claims on earnings. Leverage can enlarge income when asset returns exceed funding and hedging costs, but it can also magnify pressure when borrowing costs rise, mortgage spreads widen, or hedges do not offset portfolio moves as expected.
As of 2026-09-26, annual earnings of $1.58 per share compare with $1.44 in annual dividends. Coverage is 109.7%. Earnings cover the payment, leaving $0.14 per share.
Stable
A steady earnings cushion makes the income case more comfortable. A sustained shortfall would concern us.
Is earning power improving?
Higher. Latest two actual quarters total $0.8200 per share; the preceding two total $0.7000. This describes the earnings comparison and does not establish a DRIP action. Latest two completed quarters compared with the preceding quarters.
Positive
We want earnings per share to keep pace with the dividend. The next report helps show whether support is improving or slipping.
Asset quality
Fly High's June evidence shows Agency securities and TBA positions of $96.5 billion within a $97.2 billion investment portfolio. Guarantees reduce direct mortgage-credit exposure, while actual prepayments were broadly steady at 13.0% versus 13.2%. These are affirmative supports for asset quality, not immunity from losses. Mortgage-spread changes, prepayments and the smaller unguaranteed credit holdings can still affect recurring earnings and capital. Market-value declines are not automatically credit deterioration. Reviewed 2026-09-26.
Stable
These findings can change earnings available to each share and are explained with their company reports in the business research.
Funding and liquidity
Fly High's June figures show $7.5 billion of unencumbered cash and Agency securities, up from $7.0 billion at March 31, with tangible at-risk leverage unchanged at 7.4 times and all margin requirements met. This affirmatively supports a quarter-end liquidity cushion, but the securities component is not cash. Short-term repurchase financing still needs renewal, and additional collateral demands or higher borrowing costs can reduce the earnings margin supporting dividends. Reviewed 2026-09-26.
Stable
These findings can change earnings available to each share and are explained with their company reports in the business research.
The assets behind the earnings
How AGNC makes money
Financial snapshot: 2026-06-30. Research reviewed 2026-09-24. The annual earnings comparison is from 2026-10-10. The business and balance-sheet figures below relate to the reporting period shown.
The assets it owns
$97.2 billion investment portfolioAgency-focused mortgage investments, including TBA positions
At June 30, 2026. This economic portfolio measure includes forward mortgage positions called TBAs; it differs from the $121.760 billion of consolidated balance-sheet assets. The two figures must not be added together.
Approximate shares of the $97.2 billion investment portfolio, calculated from rounded company totals. Includes TBA mortgage exposure; this is not a breakdown of GAAP total assets.
Annual earnings of $1.58 per share compare with $1.44 in annual dividends. Coverage is 109.72%. Earnings cover the payment in this update. Keep watching whether that support holds up.
AGNC's capacity to make distributions depends principally on recurring net spread and dollar roll income, available liquidity, taxable income, and access to secured financing. Agency mortgage-backed securities generate interest income; AGNC then subtracts the cost of repurchase-agreement financing, hedges, management expenses, and other claims on earnings. Leverage can enlarge income when asset returns exceed funding and hedging costs, but it can also magnify pressure when borrowing costs rise, mortgage spreads widen, or hedges do not offset portfolio moves as expected.
This is the business behind the dividend. We care most about the recurring earnings left for shareholders after the costs of running and financing it.
The June 30 portfolio comprised $96.5 billion of Agency MBS and TBA securities and $0.7 billion of other mortgage credit investments. Thirty-year fixed-rate Agency MBS and TBAs represented 94% of the portfolio.
Fly High interpretation: Agency guarantees reduce direct mortgage-credit exposure. They do not remove interest-rate, prepayment or financing risk. The concentrated mortgage exposure makes those drivers central to earnings.
At 2026-06-30, AGNC Investment Corp. reported $121.760 billion of total assets and $109.217 billion of total liabilities.
Liabilities represented 89.7% of reported assets. This broad balance-sheet measure includes more than borrowing and must not be read as a debt-to-equity ratio. Funding costs and asset losses can both reduce the earnings available to shareholders.
Q2 net interest spread was 2.00%, versus 2.06% in Q1. The company reported 7.4 times tangible at-risk leverage and $8.58 tangible book value per common share at June 30.
Fly High interpretation: leverage magnifies both the income earned on a positive spread and the effect of asset-value changes. Follow the spread and actual earnings together; the company’s leverage definition differs from total liabilities divided by assets.
The earnings measure behind the dividend discussion
For Q2 2026, AGNC reported $0.40 of net spread and dollar roll income per common share and $0.52 of diluted GAAP net income. Common dividends declared during that same quarter totaled $0.36 per share.
Fly High interpretation: compare the same quarter and share basis. The spread measure excludes some hedge results; GAAP income also reflects valuation movements. Neither is a new forecast, and this historical comparison does not replace the formal four-quarter Dividend Coverage Ratio.
Changes in short- and long-term interest rates can affect asset yields, borrowing costs, hedge costs, and the market value of mortgage-backed securities. A favorable move in one area may be partly or fully offset by an unfavorable move elsewhere.
This exposure matters if it reduces the earnings left to pay the dividend. The next report will show whether that is happening.
Agency mortgage-backed securities can decline in value when mortgage spreads widen, even without credit losses. Because AGNC uses leverage, portfolio-value changes can have an outsized effect on tangible net book value per share and capital available to support the business.
This exposure matters if it reduces the earnings left to pay the dividend. The next report will show whether that is happening.
At June 30, 2026, the investment portfolio including TBA positions was $97.2 billion. Agency mortgage securities and TBAs accounted for $96.5 billion. Specified pools increased to 79% of the fixed-rate portfolio from 77% at March 31; actual constant prepayment rates averaged 13.0% in Q2 versus 13.2% in Q1.
Fly High assessment: The agency-backed exposure and broadly steady actual prepayments do not identify a new material credit-quality problem in this period. Mortgage prices, interest rates and funding remain important risks.
AGNC ended Q2 2026 with $7.5 billion of unencumbered cash and Agency mortgage securities, compared with $7.0 billion at March 31. Tangible at-risk leverage remained 7.4 times. The June 30 filing states that all margin requirements were met.
Fly High assessment: The dated liquidity cushion, unchanged quarter-end leverage and margin compliance do not identify a current funding shortfall. Short-term financing still needs renewal, and adverse asset prices can require additional collateral.
Tangible net book value per common share was $8.58 at June 30, 2026 versus $8.88 at December 31, 2025. Q2 alone recovered $0.20 of tangible book value per share and included $0.36 of common dividends.
Fly High assessment: The quarterly recovery is encouraging, but it did not restore the year-end capital per share. Watch whether future earnings and valuation changes preserve capital alongside the dividend; a larger portfolio alone does not answer that question.
In the next report, compare net interest spread and dollar roll income with the monthly payment. Mortgage spreads, funding terms and tangible book value will help explain any change.
Net asset value
Latest recorded asset value per share$8.5800Share price compared with recorded asset value1.05% premium
Financial data through October 10, 2026.
What to watch next
Fly High's published annual estimate of $1.58 exceeds the $1.44 annual dividend, about 1.10 times coverage. Latest two-quarter net spread and dollar roll income rose to $0.82 from $0.70, against unchanged $0.72 dividends, so improvement came from earnings, not a cut. The key issue is whether mortgage spreads, prepayments and refinancing costs preserve that earnings margin without further tangible-book erosion. Fly High's recorded $0.48 retained-earnings balance is a finite buffer, not available cash or perpetual dividend coverage.
Key dates
Expected earnings report
October 20, 2026
Dividend payment date
October 9, 2026
These dates help you follow the next report and the dividend payment. The expected earnings date can move. The declaration above gives the company’s confirmed dividend dates.
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U.S. federal · Tax year 2025
Dividend tax treatment
AGNC classified its 2025 common-stock distributions as ordinary, nonqualified dividends. The full amount also carries the Section 199A designation.
Ordinary, nonqualified
100%
Qualified dividends
0%
Capital-gain distributions
0%
Return of capital
0%
Tax year: 2025. Total distributions: $1.44 per share.
Tax details and source
Total ordinary dividends (includes qualified)
100%
Section 199A portion (within ordinary dividends)
100%
Exempt-interest distributions
0%
Reporting form
Form 1099-DIV
Source date
Not stated
Qualified dividends are included in total ordinary dividends. Section 199A is a separate designation within ordinary dividends, not extra income or qualified dividend income.
Your account type, holding period and circumstances affect treatment. Use your broker’s tax statement for filing. Return of capital generally reduces cost basis; amounts beyond basis can be taxable. IRS dividend guidance.
