American Capital Agency's Q1 Performance
By Jaded Consumer:
Overview
At the close of 2011, American Capital Agency Corp. (AGNC) had one class of equity investor, for which management held $27.71 per share in assets on which management earned a net interest rate spread of 1.94%, with about 8x leverage. The first quarter of 2012 shows management has raised the common shareholders' net asset value per share ("NAV") about 4.8% over the quarter to $29.05, while paying common shareholders a dividend of $1.25 (about 4.5% of the quarter's starting NAV, or a bit over 4.4% of the quarter's starting price of $28.16) - while protecting the future outlook by increasing the net interest spread to 2.07% at the end of the quarter. Adding the $1.25 dividend and the $1.35 NAV increase, management gave shareholders $2.60 over the quarter - a return which, whether measured from the quarter's starting NAV or its share price, easily exceeds 9%.The 9% isn'tComplete Story »
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