Why Realty Income is a Superior Dividend Stock to Consider over AGNC Investment

Sunday, 24 March 2024, 18:01

Investors should prioritize Realty Income over AGNC Investment due to its historical dividend stability, sustainable yield, and diversified net leasing portfolio. AGNC Investment's fluctuating dividend and risky mortgage securities investment strategy showcase higher risks than benefits. When choosing between AGNC and Realty Income, opting for the latter ensures a reliable income stream and long-term growth potential.
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Why Realty Income is a Superior Dividend Stock to Consider over AGNC Investment

The Case for Choosing Realty Income Over AGNC Investment

Don't fall for AGNC Investment's huge yield. This dividend stock is more reliable and still generates a very attractive income stream. It is hard to pass up a big yield, but sometimes an ultra-high dividend yield is a sign of risk. That's the case with AGNC Investment, which is offering a massive 15% yield. You would be much better off lowering your yield expectations and buying out-of-favor Realty Income. Its 5.9% yield isn't nearly as enticing, but you can actually count on it. Here's why you should forget about AGNC and buy Realty Income instead.

One graph is all you need

  • AGNC's dividend has steadily decreased over the past decade
  • High dividend yield doesn't equate to higher income and capital
  • Realty Income offers stability and reliability in dividends

Realty Income: A Sustainable Dividend Stock

  1. Realty Income's net leasing strategy mitigates risks
  2. Stable dividend growth over 29 years
  3. Historically high yield due to interest rate shifts
  4. Largest net lease REIT with diversified portfolio

Investing in Realty Income over AGNC Investment offers income investors a safer and more sustainable choice with long-term growth prospects.

Be careful what you wish for

  • High dividend yield doesn't guarantee financial stability
  • AGNC Investment's risk level outweighs potential returns
  • Realty Income's current favorability and high yield present a lucrative opportunity for long-term investors

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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