This High Yielding Stock Could Easily See Further Upside

One of the best ways to keep your portfolios safe is with high-yielding stocks – especially with those that have been exploding higher

Look at AGNC Investment (NASDAQ: AGNC | AGNC Price Prediction).

Since April 2025, the real estate investment trust ran from about $7.25 to $12. Plus, it has a 12.16% yield with high expectations for another solid year.  It’s also about to pay a 12-cent dividend on February 10, which was also paid on January 12, December 9, and November 12.

On an annualized basis, that works out to $1.44 per share in dividends. That’s significant when combined with the stock’s recent price appreciation. For investors seeking both income and upside potential, AGNC has delivered on both fronts.

Management is pleased with Success

Management has been vocal about the company’s recent success. In an earnings release, President, CEO, and Chief Investment Officer Peter Federico said:

“The fourth quarter of 2025 capped an exceptional year for AGNC shareholders. For the year, AGNC generated an impressive economic return on tangible common equity of 22.7%. Even more noteworthy, AGNC’s total stock return in 2025 was 34.8% with dividends reinvested, nearly double the performance of the S&P 500 Index.”

A major reason behind AGNC’s success is its focused strategy of investing in Agency mortgage-backed securities (Agency MBS).

These securities are backed by government-sponsored entities such as Fannie Mae and Freddie Mac, meaning they are protected against credit losses. This government backing significantly reduces default risk compared to non-agency mortgage assets.

That means the company isn’t betting on individual investors. It’s not exposed to credit mishaps, and it’s well protected from housing market stress. In other words, Agency MBS helps remove the riskiest parts of investing in mortgages, credit risk.

Agency MBS Should Have Another Strong Year

With lower interest rates and the fact that Fannie Mae and Freddie Mac just purchased Agency MBS to help lower mortgage rates, AGNC could have another big year.

In addition, the Trump Administration could take steps to strengthen the mortgage market.

In fact, President Trump unveiled a series of policy changes focused on making housing more affordable.

Among his plans are immediate action to prevent large institutional investorsfrom purchasing additional single-family homes; A call for Fannie Mae and Freddie Mac to acquire up to $200 billion in mortgage-backed securities, aimed at lowering mortgage rates and boosting housing activity; Consideration of proposals that would allow prospective homebuyers to tap into retirement or college savings accountsto help fund down payments.

AGNC’s Dividend is Safe 

With strong demand for Agency MBS, a well-balanced supply-and-demand environment, and government-backed assets at the core of its portfolio, AGNC’s cash flows remain strong.

Federico added, “As the largest pure-play agency mortgage REIT, we believe AGNC is very well positioned to generate compelling risk-adjusted returns with a substantial yield component for our shareholders.”

In short, with a 12%+ yield, consistent monthly dividends, strong recent performance, and multiple tailwinds, AGNC Investment Corp. looks positioned for another potentially strong year. For investors seeking income and safety, AGNC continues to stand out as a compelling investment opportunity.