<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>AGNC saw its tangible book value decline in Q1, but it has bounced back in April.</li><li>The environment for mREITs looks favorable once the Iran war ends.</li><li>10 stocks we like better than AGNC Investment Corp. ›</li></ul>It's been a volatile start to the year for AGNC Investment (NASDAQ: AGNC), but the stock has crept back into positive territory following its first-quarter earnings report, and it still sports a more than 13% dividend yield.AGNC is a mortgage real estate investment trust (mREIT) that holds an assortment of agency mortgage-backed securities (MBS). Because these bonds are backed by government agencies, they carry virtually no default risk, but their carrying values are greatly affected by movements in mortgage spreads and interest rates.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2Njc3Mi9nZXR0eWltYWdlcy0xMTI4NDkyMDk4LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2Njc3Mi9nZXR0eWltYWdlcy0xMTI4NDkyMDk4LmpwZyZ3PTcwMA"/>Image source: Getty Images. One nice positive in the quarter was that AGNC generated $0.42 per share in net spread and income from dollar rolls (a hedging strategy used in MBS markets to avoid losses when MBS values decline). This is what AGNC generally uses to pay out its dividend, and it was a strong number boosted by an increase in its average interest spread.AGNC generates income from the spread between the MBS it holds and its funding costs, so the average interest spread is an important metric. It rose from 1.81% in the December quarter to 2.06% in Q1.<h2>Volatile MBS values</h2>The war in Iran, not surprisingly, spurred a flight to safety, widening the yield spread between Treasury yields and MBS. This reversed an earlier tightening of spreads to start the year after President Donald Trump asked government agencies Fannie Mae and Freddie Mac (together referred to as government-sponsored enterprises, or GSEs) to buy $200 billion of agency MBS. The result was that AGNC's tangible book value (TBV) dropped $0.50 per share to $8.38 at the end of Q1 from $8.88 at the end of 2025. TBV is essentially the value of AGNC's MBS portfolio, and the metric on which mREITs are typically valued. Positively, the company said its TBV has already rebounded 6% in April, or 5% after taking its dividend accrual into account. AGNC paid out $0.36 per share in dividends in the quarter. When combined with its drop in TBV, this gave it a total economic return on tangible common equity of negative 1.6%.<h2>Is it time to buy the stock?</h2>AGNC's net spread and income from dollar rolls fell below its dividend payout in the fourth quarter, so Q1 was a nice bounce-back quarter for the mREIT. Meanwhile, its TBV has recovered in April. If the war ends soon, the environment for MBS seems much more favorable as the government looks to improve housing affordability, including the GSEs potentially buying agency MBS.As such, I think income-oriented investors who can stomach some volatility can buy this high-yield stock today.<h2>Should you buy stock in AGNC Investment Corp. right now?</h2> Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AGNC Investment Corp. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!* Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 24, 2026. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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AGNC Investment Corp. has seen a volatile start to the year, with its tangible book value declining in Q1 but rebounding in April. The stock currently offers a dividend yield exceeding 13%. The mREIT environment is expected to improve post-Iran war, making it a potential buy for income-oriented investors. However, analysts suggest there are 10 better stock options available. AGNC's net spread and income from dollar rolls showed positive recovery, indicating a favorable outlook for the company.

With a 13% Dividend Yield, Is Now the Time to Buy AGNC Stock?