AGNC will maintain its $1.40 dividend. I wonder if the dividend will exceed the earnings per share for a second straight quarter. AGNC earned $1.23 per share back in June 2010 and paid a dividend of $1.40. That equated to a 113% payout ratio. If the EPS comes in below $1.40 again, then the stock should move lower because the dividend will not be sustainable for very long. AGNC had $25,359,000 of retained earnings as of the end of June 2010 in which to draw upon to make up the difference between earnings and the dividend payment. If they continued to earn $1.23/share, then they could pay the $1.40 dividend for another five or so quarters.
| AGNC Declares $1.40 Third Quarter Dividend |
BETHESDA, Md., Sept 14, 2010 /PRNewswire via COMTEX/ -- American Capital Agency Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that its Board of Directors has declared a cash dividend of $1.40 per share for the third quarter 2010. The dividend is payable on October 27, 2010 to common shareholders of record as of September 28, 2010, with an ex-dividend date of September 24, 2010. |
Here is the link to the press release:
http://ir.agnc.com/phoenix.zhtml?c=219916&p=irol-newsArticle&ID=1471118&highlight=
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