AGNC Declares $1.40 Fourth Quarter Dividend - How much longer can they sustain this?

AGNC just declared that it will pay a $1.40 dividend for the fourth quarter 2010.  According to Google Finance there are 56.85 million shares outstanding.  So that equals a dividend payment of roughly $78.89 million.  Net income last quarter was around $60 million.  Will AGNC earn that much in 4Q2010?  I don’t think so.  If they don’t cover the dividend with earnings, then they will have to raid their piggy bank.

AGNC Declares $1.40 Fourth Quarter Dividend

 

BETHESDA, Md., Dec. 17, 2010 /PRNewswire-FirstCall/ -- 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 fourth quarter 2010.  The dividend is payable on January 27, 2011 to common shareholders of record as of December 31, 2010, with an ex-dividend date of December 29, 2010.

Here is the link to the press release: http://www.prnewswire.com/news-releases/agnc-declares-140-fourth-quarter-dividend-112091904.html

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