AGNC - AGNC Investment Corp.: Buy Sell or Hold?
2024-02-20 06:30:00 ET
Huge dividends can tempt investors but sometimes they turn out to be yield traps -- especially if the company cuts its payout due to financial strain. With a humungous 15% yield at its current share price, AGNC Investment Corp. (NASDAQ: AGNC) certainly catches your attention.
Skepticism over the dividend's dependability is expected, but investors might be surprised by how much the company is poised to pay investors in the future. AGNC could be an income investor's dream stock, but there are some risks to understand.
A real estate investment trust (REIT) is a business that leases real estate (usually commercial) or invests in real estate loans for income. REITs let investors benefit from owning real estate without needing millions of dollars to own entire properties and are generally great income investments. This is because REITs are required by law to pay out at least 90% of their taxable income to investors.
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AGNC Investment Corp.: Buy, Sell, or Hold?