Is AGNC Investment's Huge Yield as Attractive as It Seems?
AGNC Investment (NASDAQ: AGNC) stands out for one very big reason: Its huge 16% dividend yield. That's dramatically higher than the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC) and the 4.1% yield of the average real estate investment trust (REIT). Is that lofty yield as attractive as it looks? The answer is a little complicated.Putting aside AGNC Investment's business (it is a mortgage REIT, or mREIT) for a second, the stock shows up prominently on just about all lists of high-yield stocks. That's notable because the way an investor analyzes dividend stocks is vastly different from the way a growth stock would be analyzed, as just one example. So the first big question to answer with AGNC Investment is "How good a dividend stock is this REIT?"Continue reading
AGNC Investment (NASDAQ: AGNC) stands out for one very big reason: Its huge 16% dividend yield. That's dramatically higher than the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC) and the 4.1% yield of the average real estate investment trust (REIT). Is that lofty yield as attractive as it looks? The answer is a little complicated.
Putting aside AGNC Investment's business (it is a mortgage REIT, or mREIT) for a second, the stock shows up prominently on just about all lists of high-yield stocks. That's notable because the way an investor analyzes dividend stocks is vastly different from the way a growth stock would be analyzed, as just one example. So the first big question to answer with AGNC Investment is "How good a dividend stock is this REIT?"
