EQB Inc. has announced a change to the dividend payment date for its common shares and Series 3 Preferred Shares. The new payment date is September 27, 2024, instead of the originally announced September 30, 2024. The record date and dividend amount remain unchanged. The company will still redeem all outstanding Series 3 Preferred Shares on September 30, 2024.
AGNC Investment Corp.’s recent equity pricing moves have slightly improved the safety of the preferred shares but have not done much for common share returns. The company’s tangible book value per share has shown improvement, and its 5.7% economic return metric was strong in the first quarter of 2024. However, AGNC’s leverage has inched up, and the company’s hedges on interest costs will eventually run out. Additionally, AGNC has been issuing equity at a high rate, which has diluted the potential upside for common shareholders. While the spread between mortgage-backed securities and Treasuries is currently favorable, AGNC’s longer-term track record suggests caution. The company’s preferred shares, particularly AGNCL, offer an interesting security with a wide spread to Treasuries.
