AGNC Investment Corp. reported a high single-digit increase in tangible book value in Q4 compared to the year-earlier period and a 7.2% quarter-over-quarter rise in book value per share. The company expanded its mortgage-backed securities portfolio during the quarter, reflecting confidence in improving spreads on Agency MBS and strategic deployment of capital into longer-duration assets as interest rates showed signs of stabilizing.

Net interest income surged by 79% year-over-year in the fourth quarter, driven by wider asset spreads and disciplined liability management. Lower funding costs—thanks to reduced wholesale borrowing rates—helped protect dividend coverage, allowing the company to sustain its 12% annualized dividend yield without tapping capital markets for equity.

Shares currently trade at a 34% premium to GAAP book value, signaling investor optimism about further rate cuts and ongoing profitability. Management forecasts another exceptional year in 2026 as falling benchmark rates should boost fair values across the mortgage-backed securities portfolio. With the Agency MBS environment turning favorable and limited near-term refinancing pressure, AGNC is positioned to deliver continued book value accretion and consistent dividend distributions.