58 Monthly Dividends Later and This Ultra-High-Yielder Still Isn't a Dividend Stock You Can Count On
AGNC Investment (NASDAQ: AGNC) is a mortgage real estate investment trust (REIT). Given that REITs are designed to pass income on to investors in a tax-advantaged manner, it seems logical to believe that the stock, with its huge 14%+ dividend yield, would fit perfectly into a dividend investor's portfolio. That's just not the case, and 58 consecutive monthly dividends don't change that fact. Here's what you need to know before you buy AGNC Investment.On AGNC Investment's investor services home page, the company tells you exactly what its goal is: "Favorable long-term stockholder returns with a substantial yield component." That's very different from a company that has the goal of providing investors with dividend income. For example, on its investor services home page, property-owning REIT Realty Income describes its purpose as follows: "Realty Income is committed to providing our shareholders with dependable monthly dividends through maintaining a conservative capital structure and prudently planning for the sustainable growth of our platform."Image source: Getty Images.Continue reading
AGNC Investment (NASDAQ: AGNC) is a mortgage real estate investment trust (REIT). Given that REITs are designed to pass income on to investors in a tax-advantaged manner, it seems logical to believe that the stock, with its huge 14%+ dividend yield, would fit perfectly into a dividend investor's portfolio. That's just not the case, and 58 consecutive monthly dividends don't change that fact. Here's what you need to know before you buy AGNC Investment.
On AGNC Investment's investor services home page, the company tells you exactly what its goal is: "Favorable long-term stockholder returns with a substantial yield component." That's very different from a company that has the goal of providing investors with dividend income. For example, on its investor services home page, property-owning REIT Realty Income describes its purpose as follows: "Realty Income is committed to providing our shareholders with dependable monthly dividends through maintaining a conservative capital structure and prudently planning for the sustainable growth of our platform."
Image source: Getty Images.
