AGNC vs Realty Income: A Dividend Yield Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2025
0mins
Should l Buy AGNC?
Source: Fool
- Dividend Yield Comparison: AGNC Investment boasts a high dividend yield of 13.5%, compared to Realty Income's 5.7%, yet Realty Income's stability and sustainability make it a better choice for income-dependent investors despite the lower yield.
- Investment Goal Setting: Defining clear investment goals is crucial before investing, especially for those seeking a stable income stream from dividends, as it allows for measurable performance tracking.
- Dividend Stability Analysis: Realty Income has consistently increased its dividend over the past three decades, with an annual growth rate of 4.2%, which effectively keeps pace with inflation, making it suitable for retirees needing reliable income.
- Risk Assessment: While AGNC's high yield is enticing, it comes with significant volatility and the risk of dividend cuts, whereas Realty Income, despite its lower yield, offers a more dependable income source, appealing to risk-averse investors.
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Analyst Views on AGNC
Wall Street analysts forecast AGNC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AGNC is 10.44 USD with a low forecast of 10.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 11.400
Low
10.00
Averages
10.44
High
11.00
Current: 11.400
Low
10.00
Averages
10.44
High
11.00
About AGNC
AGNC Investment Corp. is an internally managed real estate investment trust (REIT). The Company provides private capital to the United States housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the United States. The Company invests primarily in Agency residential mortgage-backed securities (Agency RMBS) on a leveraged basis. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a United States Government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the GSEs), or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae). It may also invest in other assets related to the housing, mortgage or real estate markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AGNC Investment Corp. Sees Turnaround in 2025 Performance
- Significant Shareholder Returns: AGNC Investment Corp. achieved nearly a 35% stock return in 2025, benefiting from a more favorable economic environment and reinvested dividends, demonstrating the company's resilience amid market fluctuations.
- Net Asset Value Recovery: AGNC's tangible book value rebounded from $7.81 in Q2 2025 to $8.88 by year-end, reflecting the recovery in its mortgage-backed securities (MBS) portfolio value and boosting investor confidence.
- Dividend Stability: Although the net income per share was $0.35, falling short of covering the $0.36 dividend this quarter, the overall economic return on tangible common equity reached 11.6%, indicating the company's ongoing commitment to its dividend policy.
- Optimistic Market Outlook: With mortgage spreads tightening and anticipated future rate cuts lowering funding costs, AGNC is positioned to support its 12% dividend yield, making it an attractive option for income-oriented investors.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Upgrades and Downgrades: The rating changes include upgrades and downgrades for certain stocks, prompting investors to pay attention to these shifts to assess potential investment opportunities and risks.
- Market Reaction Expectations: Analyst rating adjustments may lead to short-term volatility in the affected stocks, necessitating that investors closely monitor market dynamics to seize optimal trading opportunities.
- Source of Investment Advice: While the article does not provide specific stock names or rating details, investors can visit the analyst ratings page for a more comprehensive view of the information and recommendations available.
See More
AGNC Investment: Risks Behind High Dividend Yield
- Dividend Yield Analysis: AGNC Investment boasts an 11.98% dividend yield; however, its highly volatile dividends have been trending downward for over a decade, indicating significant risks for income-seeking investors.
- Business Model Insight: As a mortgage REIT, AGNC operates by purchasing mortgages pooled into bond-like securities, which is fundamentally different from traditional property-owning REITs, necessitating a deeper understanding of its investment portfolio for potential investors.
- Investor Suitability: While AGNC's total return since inception has outperformed the S&P 500 ETF, its high volatility and lower capital returns make it unsuitable for dividend-dependent investors, yet appealing for those focused on total return and diversification.
- Investment Decision Advice: For investors looking to cover living expenses through dividends, AGNC may not be the best choice; however, for those prioritizing total return, the current market conditions could present a compelling investment opportunity.
See More
AGNC Investment Trust Reports Exceptional 2025 Performance
- Strong Annual Returns: AGNC Investment Trust achieved an impressive 22.7% economic return and a 34.8% total stock return in 2025, nearly double the S&P 500, showcasing the success of its investment strategy and favorable market conditions.
- Quality Asset Performance: The company's focus on Agency MBS, backed by government agencies like Fannie Mae, yielded an 8.6% total return for the year, marking the best performance since 2002 and reflecting the strength of its investment portfolio.
- Enhanced Capital Adequacy: In Q4 2025, AGNC issued over $350 million in new shares, providing additional capital for future investment opportunities, ensuring it can continue to generate favorable returns in a supportive market environment.
- Dividend Security: Although AGNC's cash flow is less stable than traditional REITs, its strong profitability in the current investment backdrop suggests it can maintain a high dividend yield of 11.83% in 2026, attracting attention from high-risk, high-reward investors.
See More
AGNC Investment Thrives in Strong Agency MBS Market
- Significant Annual Returns: AGNC Investment achieved a sustainable economic return of 22.7% in 2025, leading to a total stock return of 34.8%, nearly double that of the S&P 500, showcasing its strong profitability in a volatile market.
- High Dividend Assurance: With a monthly dividend yield exceeding 12%, AGNC Investment expects to maintain this high dividend in 2026, reflecting its robust performance and market confidence in the mortgage REIT sector.
- Capital Expansion Strategy: In Q4 2025, AGNC issued over $350 million in new shares, providing ample capital for future investment opportunities, thereby enhancing its liquidity and market competitiveness.
- Optimistic Market Outlook: With the Federal Reserve lowering interest rates and active purchases by Fannie Mae and Freddie Mac, AGNC holds a positive view on the mortgage market for 2026, anticipating continued benefits and sustained profitability.
See More
AGNC Investment Corp. Reports Strong Q4 2025 Earnings with 34.8% Total Stock Return
- Strong Economic Returns: AGNC achieved an 11.6% economic return in Q4 2025, driving a full-year economic return of 22.7%, with a total stock return of 34.8%, nearly double that of the S&P 500, highlighting the company's robust market performance.
- Comprehensive Income: The comprehensive income for Q4 was reported at $0.89 per common share, with an economic return on tangible common equity of 11.6%, including $0.36 in dividends and a $0.60 increase in tangible net book value per share, reflecting positive impacts from reduced interest rate volatility and tighter mortgage spreads.
- Decreased Leverage: AGNC's leverage decreased to 7.2x tangible equity by the end of Q4, down from 7.6x in Q3, indicating a more cautious approach to risk management in response to market fluctuations.
- Portfolio Optimization: The company increased the allocation to interest rate swaps to 70% of its hedge mix, enhancing its resilience against interest rate volatility, with expectations that lower future funding costs will provide a moderate tailwind to net spread and dollar roll income.
See More
AGNC Investment Corp. Sees Turnaround in 2025 Performance
- Significant Shareholder Returns: AGNC Investment Corp. achieved nearly a 35% stock return in 2025, benefiting from a more favorable economic environment and reinvested dividends, demonstrating the company's resilience amid market fluctuations.
- Net Asset Value Recovery: AGNC's tangible book value rebounded from $7.81 in Q2 2025 to $8.88 by year-end, reflecting the recovery in its mortgage-backed securities (MBS) portfolio value and boosting investor confidence.
- Dividend Stability: Although the net income per share was $0.35, falling short of covering the $0.36 dividend this quarter, the overall economic return on tangible common equity reached 11.6%, indicating the company's ongoing commitment to its dividend policy.
- Optimistic Market Outlook: With mortgage spreads tightening and anticipated future rate cuts lowering funding costs, AGNC is positioned to support its 12% dividend yield, making it an attractive option for income-oriented investors.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Upgrades and Downgrades: The rating changes include upgrades and downgrades for certain stocks, prompting investors to pay attention to these shifts to assess potential investment opportunities and risks.
- Market Reaction Expectations: Analyst rating adjustments may lead to short-term volatility in the affected stocks, necessitating that investors closely monitor market dynamics to seize optimal trading opportunities.
- Source of Investment Advice: While the article does not provide specific stock names or rating details, investors can visit the analyst ratings page for a more comprehensive view of the information and recommendations available.
See More
AGNC Investment: Risks Behind High Dividend Yield
- Dividend Yield Analysis: AGNC Investment boasts an 11.98% dividend yield; however, its highly volatile dividends have been trending downward for over a decade, indicating significant risks for income-seeking investors.
- Business Model Insight: As a mortgage REIT, AGNC operates by purchasing mortgages pooled into bond-like securities, which is fundamentally different from traditional property-owning REITs, necessitating a deeper understanding of its investment portfolio for potential investors.
- Investor Suitability: While AGNC's total return since inception has outperformed the S&P 500 ETF, its high volatility and lower capital returns make it unsuitable for dividend-dependent investors, yet appealing for those focused on total return and diversification.
- Investment Decision Advice: For investors looking to cover living expenses through dividends, AGNC may not be the best choice; however, for those prioritizing total return, the current market conditions could present a compelling investment opportunity.
See More
AGNC Investment Trust Reports Exceptional 2025 Performance
- Strong Annual Returns: AGNC Investment Trust achieved an impressive 22.7% economic return and a 34.8% total stock return in 2025, nearly double the S&P 500, showcasing the success of its investment strategy and favorable market conditions.
- Quality Asset Performance: The company's focus on Agency MBS, backed by government agencies like Fannie Mae, yielded an 8.6% total return for the year, marking the best performance since 2002 and reflecting the strength of its investment portfolio.
- Enhanced Capital Adequacy: In Q4 2025, AGNC issued over $350 million in new shares, providing additional capital for future investment opportunities, ensuring it can continue to generate favorable returns in a supportive market environment.
- Dividend Security: Although AGNC's cash flow is less stable than traditional REITs, its strong profitability in the current investment backdrop suggests it can maintain a high dividend yield of 11.83% in 2026, attracting attention from high-risk, high-reward investors.
See More
AGNC Investment Thrives in Strong Agency MBS Market
- Significant Annual Returns: AGNC Investment achieved a sustainable economic return of 22.7% in 2025, leading to a total stock return of 34.8%, nearly double that of the S&P 500, showcasing its strong profitability in a volatile market.
- High Dividend Assurance: With a monthly dividend yield exceeding 12%, AGNC Investment expects to maintain this high dividend in 2026, reflecting its robust performance and market confidence in the mortgage REIT sector.
- Capital Expansion Strategy: In Q4 2025, AGNC issued over $350 million in new shares, providing ample capital for future investment opportunities, thereby enhancing its liquidity and market competitiveness.
- Optimistic Market Outlook: With the Federal Reserve lowering interest rates and active purchases by Fannie Mae and Freddie Mac, AGNC holds a positive view on the mortgage market for 2026, anticipating continued benefits and sustained profitability.
See More
AGNC Investment Corp. Reports Strong Q4 2025 Earnings with 34.8% Total Stock Return
- Strong Economic Returns: AGNC achieved an 11.6% economic return in Q4 2025, driving a full-year economic return of 22.7%, with a total stock return of 34.8%, nearly double that of the S&P 500, highlighting the company's robust market performance.
- Comprehensive Income: The comprehensive income for Q4 was reported at $0.89 per common share, with an economic return on tangible common equity of 11.6%, including $0.36 in dividends and a $0.60 increase in tangible net book value per share, reflecting positive impacts from reduced interest rate volatility and tighter mortgage spreads.
- Decreased Leverage: AGNC's leverage decreased to 7.2x tangible equity by the end of Q4, down from 7.6x in Q3, indicating a more cautious approach to risk management in response to market fluctuations.
- Portfolio Optimization: The company increased the allocation to interest rate swaps to 70% of its hedge mix, enhancing its resilience against interest rate volatility, with expectations that lower future funding costs will provide a moderate tailwind to net spread and dollar roll income.
See More
