Better Dividend Stock: AGNC Investment vs. Realty Income
2026-03-06 04:53:00 ET
If you are looking for dividend stocks to buy, the obvious place to start is by examining dividend yields. However, yield alone is not a good reason to buy a stock. That fact is highlighted by comparing AGNC Investment (NASDAQ: AGNC) and its huge 12.9% yield to Realty Income (NYSE: O) and its smaller, but still quite attractive, 4.8% yield.
AGNC Investment and Realty Income are both real estate investment trusts (REITs), but they do vastly different things. That is the big reason why dividend investors will likely be better off with the lower-yielding option here. The issue boils down to AGNC Investment's focus on mortgage securities. It effectively buys bond-like securities created by pooling mortgages together. In many ways, it is similar to a mutual fund, as the company manages a portfolio of mortgage securities.
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