AGNC vs Realty Income: A Dividend Yield Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
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.
AGNC
$10.85+Infinity%1D
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 10.19 USD with a low forecast of 9.00 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.
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 10.840
Low
9.00
Averages
10.19
High
11.00
Current: 10.840
Low
9.00
Averages
10.19
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.
