AGNC - Should You Buy Ultra-High-Yield AGNC Investment While It's Below $10?
2024-07-15 08:19:00 ET
A big dividend yield can blind even the most conservative income investor to the risks of buying a particular company's shares. That's the risk today with AGNC Investment (NASDAQ: AGNC) . This mortgage real estate investment trust (REIT) has an ultra-high yield that's over 14%!
But that's where the good news stops. Income investors should tread very carefully. Here's why.
AGNC Investment is a REIT, but it isn't a traditional property-owning REIT . It buys mortgages that have been pooled into bond-like securities. Even though it is a REIT, comparing it to a property-owning REIT would be like comparing apples to oranges. Sure, they're both fruits, but they are fundamentally different in a huge number of ways.
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Should You Buy Ultra-High-Yield AGNC Investment While It's Below $10?