3 Hold-Rated Dividend Stocks: HR, AGNC, NS
American Capital Agency (NASDAQ: AGNC) shares currently have a dividend yield of 18.00%. American Capital Agency Corp. operates as a real estate investment trust (REIT). The company has a P/E ratio of 2.83. The average volume for American Capital Agency has been 10,247,300 shares per day over the past 30 days. American Capital Agency has a market cap of $9.2 billion and is part of the real estate industry. Shares are down 19.3% year to date as of the close of trading on Tuesday. TheStreet Ratings rates American Capital Agency as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 800.8% when compared to the same quarter one year prior, rising from -$261.00 million to $1,829.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, AMERICAN CAPITAL AGENCY CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- AMERICAN CAPITAL AGENCY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN CAPITAL AGENCY CORP reported lower earnings of $4.40 versus $5.22 in the prior year. This year, the market expects an improvement in earnings ($6.88 versus $4.40).
- The revenue fell significantly faster than the industry average of 9.2%. Since the same quarter one year prior, revenues fell by 39.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- AGNC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.85%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full American Capital Agency Ratings Report.
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