Invest Wisely: Opt for This High-Yield Stock Over AGNC Investment

Saturday, 2 March 2024, 14:30

Investors looking for sustainable dividends should steer clear of AGNC Investment's high yield and consider Realty Income instead. AGNC Investment's dividend has a history of cuts and may not be reliable. In contrast, Realty Income offers a lower but more secure dividend with a long track record of annual increases. Choose wisely to avoid the risks associated with chasing high yields.
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Invest Wisely: Opt for This High-Yield Stock Over AGNC Investment

AGNC Investment, the dividend that just quits

AGNC Investment (NASDAQ: AGNC) has a 15% dividend yield, which has been cut multiple times over the past dozen years. The stock has tracked the dividend lower, indicating potential capital losses.

Look at Realty Income

Realty Income (NYSE: O) has a 5.8% dividend yield and a track record of increasing dividends annually for 29 years. With a solid balance sheet and an adjusted FFO payout ratio of 76.3%, Realty Income offers a reliable dividend backed by an investment-grade-rated balance sheet.

The REIT is the largest net lease REIT with a globally diversified portfolio of over 15,000 properties, providing stability to investors. While growth may be modest, the consistent dividend growth outpacing inflation makes Realty Income an attractive choice for income investors.

Be careful what you wish for

While AGNC Investment may seem attractive with its high yield, investors should prioritize sustainability over yield. Realty Income offers a more reliable dividend with a history of sustainability. Consider Realty Income as a stable investment option with a moderate yield compared to AGNC Investment's high but risky yield.


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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