AGNC - Is AGNC Investment the Best REIT Stock for You?
2024-04-11 07:45:00 ET
It can be hard to look at a stock with a huge yield and not be drawn in. That's exactly the case today with AGNC Investment (NASDAQ: AGNC) and its ultra-high 14.8% dividend yield. And given that AGNC Investment is a real estate investment trust (REIT), a cursory look might even give the impression that the dividend is backed by stable real estate investments. You need to look deeper to understand the inherent risks of owning AGNC Investment.
Real estate investment trusts were created as a way for small investors to have access to cash-generating, institutional-level real estate. The logic backing the REIT structure is roughly similar to you buying a second home and renting it out. It's just that REITs buy large physical properties, like apartment buildings, hotels, and offices, and lease them out. It isn't a complex business at its core and dividend investors should probably consider owning some REITs.
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Is AGNC Investment the Best REIT Stock for You?