AGNC Investment's Sky-High Dividend Yield Comes With Big Risks for Income Investors
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AGNC Investment's high 20% dividend yield indicates risk of an unsustainable dividend. As share price falls, yield rises mathematically.
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AGNC faces headwinds from rising rates, housing market, and falling book value per share, indicating stress on its mortgage REIT business.
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AGNC has bad dividend history, with steady downtrend for a decade as share price falls too. Not reliable income.
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Even if market improves, AGNC's business may not strengthen enough to avoid further dividend cuts given strains.
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Mortgage REITs like AGNC better suited for institutional investors focused on asset allocation, not individual dividend investors.