11% Yield And An Upgrade On Improving Fundamentals

The latest decline in this stock doesn't match with the fundamentals for dividends, so I'm able to bring out the buy rating. In previous coverage, I was on the fence because share prices were just a bit too high. The steeper yield curve is very positive for dividend sustainability, and I believe the $0.18 dividend looks very solid. This is a clear and easy call for me to make. This is a buy rating on the company.

An upgrade for American Capital Agency Corp. (NASDAQ:AGNC) is a little overdue. The company reported a great third quarter, and shares jumped too high for me to come out with a buy rating following the announcement. To be fair, they were climbing prior to the announcement coming out. When I previewed the announcement, shares were running $19.48, and I came out in the neutral camp. I correctly predicted what the company would report for the third quarter, and shares rallied past $20. Following up on the earnings release and subsequent call, I decided to stick with my neutral rating. The prices were just too high to upgrade, even though the portfolio met my expectations and beat analysts' expectations.

Source: Seeking Alpha

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