10 Best Monthly Dividend Stocks to Buy Now

2. AGNC Investment Corp. (NASDAQ:AGNC)

Number of Hedge Fund Holders: 29

Dividend Yield as of January 28: 12.63%

On January 28, Wells Fargo raised its price target on AGNC Investment Corp. (NASDAQ:AGNC) to $12 from $10 and kept an Overweight rating. The firm pointed out that AGNC reported Q4 core EPS of $0.35, which came in below its $0.38 estimate and the $0.37 consensus. During the earnings call, management said the October and December rate cuts should support net spread and dollar roll income. Wells Fargo also views the outlook for additional Fed rate cuts in 2026 as supportive for agency MBS REITs and book value.

During the Q4 2025 earnings call, President, CEO, and Chief Investment Officer Peter Federico said the company ended the year on a strong note and delivered solid results across 2025. He noted that “AGNC’s 11.6% economic return in the fourth quarter drove our impressive full year economic return of 22.7%,” and said the picture looks even better when shareholder returns are included. With dividends reinvested, AGNC’s total stock return reached 34.8% for the year, close to double the S&P 500’s return.

Federico also said mortgage spreads stayed relatively stable and described the investment environment as more supportive as the Federal Reserve shifted toward a more accommodative policy stance. In his view, those conditions leave AGNC “very well positioned to generate compelling risk-adjusted returns with a substantial yield component for our shareholders.”

AGNC Investment Corp. (NASDAQ:AGNC) is an internally managed REIT that provides private capital to the U.S. housing market. The company focuses on adding liquidity to residential mortgage markets, helping support housing finance and homeownership across the country.