3 Reasons to Buy AGNC Investment Stock Like There's No Tomorrow
AGNC Investment (NASDAQ: AGNC) is a real estate investment trust (REIT), but it isn't a landlord, as are most REITs. This changes the equation for investors and could make the ultra-high 13%+ dividend yield a bad choice. But, if you understand what you are buying, there is a reason to buy this REIT today.Most REITs buy physical properties, but AGNC Investment is a mortgage REIT. It buys mortgages that have been pooled together into bond-like securities. These securities trade all day, and their prices can -- and do -- change dramatically based on factors such as interest rate changes, property market dynamics, and mortgage repayment rates, among other things. While you might be able to keep fairly close tabs on a property-owning REIT, it would be very difficult to track AGNC Investment, or any other mortgage REIT, with the same level of certainty.Image source: Getty Images.Continue reading
AGNC Investment (NASDAQ: AGNC) is a real estate investment trust (REIT), but it isn't a landlord, as are most REITs. This changes the equation for investors and could make the ultra-high 13%+ dividend yield a bad choice. But, if you understand what you are buying, there is a reason to buy this REIT today.
Most REITs buy physical properties, but AGNC Investment is a mortgage REIT. It buys mortgages that have been pooled together into bond-like securities. These securities trade all day, and their prices can -- and do -- change dramatically based on factors such as interest rate changes, property market dynamics, and mortgage repayment rates, among other things. While you might be able to keep fairly close tabs on a property-owning REIT, it would be very difficult to track AGNC Investment, or any other mortgage REIT, with the same level of certainty.
Image source: Getty Images.
