American Capital Agency Corp. (NASDAQ:AGNC) triggered a low Put/Call volume alert, according to Market Intellisearch – a sign that investors are almost all in consensus on the upward momentum in a stock. AGNC averaged 3.80 calls traded for each put contract, good for a Put/Call ratio of 0.26.
Indeed, the stock seems to be in the midst of a surge as it approaches its late-September dividend. It’s a familiar refrain for high-yield REITs like AGNC. The stock fumbles around for two months after its dividend, then starts a surge as dividend-hungry investors move back into the stock.
It’s hard to resist a yield that’s approaching 20 percent, after all, and there are lots of REITs out there offering just that. Among them? Chimera Investment Corporation (NYSE:CIM) with a 17.2 percent yield and Resource Capital Corp. (NYSE:RSO) with a 16 percent yield. They’re so attractive, in fact, they look like buy-and-holds to me – especially when the Dow’s in negative territory on the year.
