O - Interested In AGNC Investment's Big-Time Monthly Dividend? Check Out These Lower Risk Alternatives First.
2024-04-03 06:44:00 ET
AGNC Investment (NASDAQ: AGNC) offers big-time dividend income potential. The real estate investment trust (REIT) pays a monthly dividend currently yielding more than 14%. That's ten times more dividend income than you could earn by investing in an S&P 500 index fund, given its current yield of less than 1.4%.
The mortgage REIT's monster monthly dividend likely has many income-seeking investors interested in its stock. However, before you buy that REIT, you should check out Realty Income (NYSE: O) and EPR Properties (NYSE: EPR) . They also offer high-yielding monthly dividends. The big difference is that their payouts are more likely to rise in the future, while AGNC Investment could very well cut its dividend again.
Realty Income currently yields nearly 6%. While that's a lot lower than AGNC Investment's monster dividend, it's a much more sustainable payout. The REIT owns an increasingly diversified portfolio of income-producing commercial real estate, including retail, industrial, gaming, data centers, and other properties, secured by long-term net leases . That lease structure supplies it with stable and growing rental income. Tenants cover maintenance costs, building insurance, and real estate taxes. Meanwhile, most leases escalate rents each year.
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Interested In AGNC Investment's Big-Time Monthly Dividend? Check Out These Lower Risk Alternatives First.