American Capital Agency Declares Dividend

American Capital Agency AGNC declares a 3Q dividend of $1.40 per share, in a recent report from Deutsche Bank. DB said the dividend was right in line with its forecast and flat sequentially. The dividend is payable on Oct. 27 to stockholders of record on September 28. Deutsche Bank remains comfortable with the 3Q core earnings estimate of $1.02 per share. It believes the 3Q dividend includes a portion of the company's undistributed taxable income, which totaled $1.10 per share at the end of 2Q. DB maintains a hold on American Capital Agency as there is the expectation that the dividend will eventually be cut to a level supported by quarterly earnings. Risks include interest rate volatility, which may result in significant changes in book value, as well as the reduction of AGNC's net spreads through the increase of interest rates or increase in prepayment speeds. American Capital Agency closed Wednesday at $28.80