About this website

The website explains how distributable cash flow (DCF) is defined and why it is important to analyze it and derive a sustainable measure of DCF. Results reported by master limited partnerships (MLPs) are analyzed. comparisons of reported DCF to sustainable DCF are generated, and various coverage ratios and reports analyzing performance are generated. Simplified sources and uses of funds statements are presented to focus readers' attention on key cash flow items. The website also features general articles about MLPs and about other topics of interest to yield-focused investors.

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Disclaimer

The documents and opinions in this website are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the securities mentioned or to solicit transactions or clients. The information in this website is believed, but not guaranteed, to be accurate. All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting his/her own independent research and consulting with his/her investment advisor and tax professional as to whether such action is suitable based on the investor’s investment objectives, personal and financial situation, and specific legal or tax situation.

AGNC - Does American Capital Agency's business model support a dividend increase?

Author: Ron Hiram

Published: August 28, 2014

Summary:

AGNC’s sustainable coverage of dividends turned positive in 4Q13 and has remained so for the last 3 consecutive quarters. The improved performance was primarily driven by dividend reductions. The improved performance was achieved while decreasing leverage. The 5-year trend of declining or flat dividends may finally […]

Model for assessing sustainability of AGNC‘s 11% dividend yield – 1Q14 update

Author: Ron Hiram

Published: May 25, 2014

This article applies a methodology described in my prior articles to assess whether the dividends paid by American Capital Agency Corp. (AGNC) are sustainable in light of the latest available information (1Q14 data) on leverage and interest rate spreads.

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Model for assessing sustainability of AGNC‘s dividend

Author: Ron Hiram

Published: April 15, 2014

In a prior article I outlined a methodology for assessing the dividend sustainability of American Capital Agency Corp. (AGNC), a Nasdaq-listed mortgage real estate investment trust (“mREIT”) with a market capitalization of ~$7.9 billion and assets on the balance sheet as of 12/31/13 totaling ~$76 billion. The […]

AGNC - Methodology for Assessing Sustainability of American Capital Agency’s 16% Dividend Yield

Author: Ron Hiram

Published: December 2, 2013

American Capital Agency Corp. (AGNC) is a Nasdaq-listed mortgage real estate investment trust (“mREIT”) with a market capitalization of ~$7.7 billion and assets on the balance sheet as of 9/30/13 totaling ~$97 billion. AGNC owns, manages, and finances a portfolio of real estate related investments, including mortgage […]

AGNC - Assessing American Capital Agency's Dividend Sustainability: 2Q13 Update

Author: Ron Hiram

Published: August 22, 2013

In a prior article I outlined a methodology for assessing the dividend sustainability of American Capital Agency Corp. (AGNC), a Nasdaq-listed mortgage real estate investment trust with a market capitalization of ~$8.7 billion and assets on the balance sheet as of 6/30/13 totaling ~$98 billion. AGNC owns, […]