AGNC AGNC Investment Corporation

The Paragon Report examines the outlook for diversified REITs and provides equity research on American Capital Agency Corporation (NASDAQ: AGNC) and CYS Investments, Inc. (NYSE: CYS). Access to the full company reports can be found at:

www.paragonreport.com/AGNC

www.paragonreport.com/CYS

To be classified as a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends. While this makes paying its dividend more volatile, given the current economic conditions, REITs remain appealing.

Most Mortgage REITs have portfolios made up principally of mortgages insured by the federal agencies Fannie Mae, Freddie Mac and Ginnie Mae. They typically borrow at low rates and lend in the mortgage markets at higher rates, usually by buying mortgage-backed securities. By purchasing bonds guaranteed by the government, analysts argue these companies take on no risk of default, with the principle concern being an interest rate risk. The good news for REIT investors is that last month the Federal Open Market Committee announced that they would keep interest rates near zero through mid-2013

The Paragon Report provide investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on diversified REITs register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Presently American Capital Agency pays an annual dividend of $5.60 per share for a massive yield of around 20.2 percent. The company reported net income for the second quarter of 2011 of $177.8 million, or $1.36 per share. Taxable income for the second quarter was $1.56 per share, or $0.20 higher than GAAP net income per share for the quarter.

CYS Investments pays an annual dividend of $2.40 per share for a hefty yield of around 18.9 percent.

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