Why This 13% Yield Is Better Than Its 19% Yielding Peer
AGNC leverages its ~27% premium to book value via its ATM program, issuing new equity above net asset value, making every new share accretive to existing investors. IVR issued over 36 million shares below book value, permanently diluting book value per share. IVR's eye-popping ~19% yield is largely due to shrinking book value and falling share price; AGNC's ~13% yield is backed by expanding net spread income and a growing asset base.