AGNC Investment has a huge yield, but if you are looking for reliable dividends you will be more impressed by Federal Realty.
It is tempting to reach for yield if you are a dividend investor. I know, I’ve done it. And I’ve ended up sorry for making the decision more times than I care to admit. Which is why I own Federal Realty Investment Trust (FRT 1.51%) and not AGNC Investment (AGNC 1.62%), despite the fact that the latter’s dividend yield is over three times larger! Here’s why it is so important to know what you want when you are looking at ultra-high-yield dividend stocks like AGNC Investment.
What does AGNC Investment do?
From a high-level view, AGNC Investment is a real estate investment trust (REIT). REITs are designed to pass income on to investors and generally have large dividend yields. I like REITs a lot and own a few of them. That said,…