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AGNC Stock Attracts Income Investors as Fed Rate Cuts Diminish Appeal of CDs and T-Bills
AGNC Stock Attracts Income Investors as Fed Rate Cuts Diminish Appeal of CDs and T-Bills
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BTCCSquare news:
With the Federal Reserve executing its first rate cut of 2025 and signaling further reductions, income investors are shifting focus from risk-free CDs and T-bills back to high-yield dividend stocks. AGNC Investment Corp, trading below Wall Street's $10.50 price target, offers a staggering 14.75% forward yield—positioning it as a potential beneficiary of this macroeconomic pivot.
The mortgage REIT's government-backed Agency MBS portfolio provides insulation against housing market volatility, though its performance remains tethered to interest rate fluctuations. Unlike traditional REITs that thrive in low-rate environments, mREITs like AGNC require precise rate conditions to optimize their mortgage-backed securities strategy.
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