1 Magnificent High-Yield Stock Down 25% to Buy and Hold Forever
Dividend investors have to balance risk and reward when looking for income stocks. Huge yields, like the 16% on offer from AGNC Investment (NASDAQ: AGNC), are enticing, but they often come with huge risks. A more modest yield, like the 4.7% on offer from one giant North American bank, will likely be more appropriate for most. The bank is currently down 25% from its highs, so it looks like it is on sale.AGNC Investment is not a bad company. In fact, it lives up to its stated goal, which is to provide investors with a strong total return. Supporting that total return is a "substantial yield component." Given the 16% yield, the word "substantial" seems like something of an understatement. However, it actually isn't. The chart below will be very illuminating for dividend investors drawn to that lofty yield.Continue reading
Dividend investors have to balance risk and reward when looking for income stocks. Huge yields, like the 16% on offer from AGNC Investment (NASDAQ: AGNC), are enticing, but they often come with huge risks. A more modest yield, like the 4.7% on offer from one giant North American bank, will likely be more appropriate for most. The bank is currently down 25% from its highs, so it looks like it is on sale.
AGNC Investment is not a bad company. In fact, it lives up to its stated goal, which is to provide investors with a strong total return. Supporting that total return is a "substantial yield component." Given the 16% yield, the word "substantial" seems like something of an understatement. However, it actually isn't. The chart below will be very illuminating for dividend investors drawn to that lofty yield.
