AGNC to $20 second quarter 2020
AGNC has a great Dividend at around 10%, used to be 20% though when money was near free as they make their money on (long-term/short-term) credit swaps. Loose monetary policy fed AGNC coffers and loose monetary policy has been returning. After seeing 3 rounds of QE along with 3 rate cuts in 2019 and a presidential push for negative interest rates from the feds, there is a lot of room not only for AGNC to return to 20% dividends but also see quite a bit of price growth.
To be fair, AGNC has been in a massive descending channel since 2012 and overall the trend is bearish on the charts and we are currently mid channel. It is because of the information above that I suspect AGNC may break out of this multi-year descending channel in 2020. Even without breaking out of channel, just remaining within the constructs of the current trend, AGNC should see a little over $20 by mid 2020 along with increased distributions.
There is always the chance that we see another real-estate market crash and AGNC's books will be full of junk but absent that, this is a great play for 10% gains and 5% dividends over the next 6 months and with a break out of channel and reversal of trend, this could be a great multi-year hold. I am holding AGNC long, I have held them off and on for many years. This is not investment advice, just some observations I have made in my evaluation. DYOR, invest with care.
S
To be fair, AGNC has been in a massive descending channel since 2012 and overall the trend is bearish on the charts and we are currently mid channel. It is because of the information above that I suspect AGNC may break out of this multi-year descending channel in 2020. Even without breaking out of channel, just remaining within the constructs of the current trend, AGNC should see a little over $20 by mid 2020 along with increased distributions.
There is always the chance that we see another real-estate market crash and AGNC's books will be full of junk but absent that, this is a great play for 10% gains and 5% dividends over the next 6 months and with a break out of channel and reversal of trend, this could be a great multi-year hold. I am holding AGNC long, I have held them off and on for many years. This is not investment advice, just some observations I have made in my evaluation. DYOR, invest with care.
S
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.