Will American Capital Agency Corp. (AGNC) Earnings Force Another Dividend Cut?

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The big question for American Capital Agency will be whether its hedging program helps it avoid big losses. CYS Investments Inc (NYSE:CYS) reported a big loss last week, with its book value taking a large hit because of hedging practices that didn’t work as well as CEO Kevin Grant would have liked. If its hedges work, then American Capital Agency earnings could give investors a nice surprise next week, forestalling any need for further dividend cuts — at least for now.

The article Will American Capital Agency Earnings Force Another Dividend Cut? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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