AGNC NEWEST ADDITION TO STOCK PORTFOLIO

Looking to boost overall cash flow from dividends I've decided to add American Capital Agency Corp (AGNC: NASDAQ) to my taxable investment account.  AGNC is a real estate investment trust which earns income primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations. These investments consist of securities, for which the principal and interest payments are guaranteed by United States Government-sponsored entities, such as Fannie Mae and Freddie Mac or by a United States Government agency, such as Ginnie Mae. The Company is externally managed by American Capital Agency Management, LLC, a subsidiary of a wholly owned portfolio company of American Capital, Ltd.

AGNC has a price to earnings of 4.01 with a ROE of 34.17.  They have earnings per share of $6.84 with a dividend of $5.60, which represents a return of 19.55% on their recent share price of $28.64.

I have to admit a bit of trepidation about investing in AGNC after previous experiences with REITs.  However their reported earnings seem to indicate support for their current dividend and their share price has remained fairly stable during the past year, with their 52 week high being $30.09 and their 52 week low of $23.61.  Since the total initial investment I'll be making is a small fraction of my portfolio, I believe the risk is acceptable for current returns.  The fact that they've managed to thrive during one of the worst economic downturns in this writers memory is yet another positive as far as I'm concerned.