Why This High-Yield ETF Recovered 28% While Most Income Investors Slept
Briefly

Why This High-Yield ETF Recovered 28% While Most Income Investors Slept
"Annaly's dividend coverage is tight but intact. The company paid $0.70 per share quarterly throughout 2025, and its non-GAAP earnings available for distribution covered that payout in every quarter, ranging from $0.72 to $0.73 per share."
"CEO David Finkelstein described 2025 as delivering a '20% economic return and 40% total shareholder return underscoring the resilience and strength of our diversified housing finance model.'"
"AGNC's full-year 2025 EPS of $1.47 covered the $0.12 monthly dividend, but Q2 2025 produced a -$0.17 EPS loss after the tariff-driven spread widening in April."
iShares Mortgage Real Estate ETF (REM) provides a yield of 9.55%, significantly higher than Treasury or conventional dividend stocks. REM invests in mortgage REITs, which borrow at short-term rates and invest in mortgage-backed securities, generating income through net interest margins. The fund's top holdings, Annaly Capital Management and AGNC Investment Corp., are crucial for income distribution. Annaly maintains a stable dividend coverage, while AGNC's performance is more variable, with some quarters showing losses but still managing to cover dividends through net spread income.
Read at 24/7 Wall St.
Unable to calculate read time
[
|
]