
AGNC Dividend Ain't So Bad
NEW YORK (
) --
American Capital Agency Corp.
(AGNC) - Get Report
shares were poised for a rally Wednesday morning as investors digested news about the mortgage real estate investment trust's reduced dividend.
AGNC cut its quarterly dividend to $1.05 per share from the $1.25 it had paid previously, the REIT announced before Tuesday's market close. AGNC shares were flat to lower in late trading Tuesday, finishing the day a penny higher at $25.34.
However, they were up more than 3% in pre-market trading Wednesday.
The dividend cut was "arguably in line with most expectations," according to a report published late Tuesday from Sterne Agee analyst Henry Coffey, who predicted a "snap-back" trade. Longer-term, Coffey's sector favorites are
Dynex
(DX) - Get Report
,
MFA Financial
(MFA) - Get Report
and
PennyMac
(PMT) - Get Report
.
--
Written by Dan Freed in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.









