High-Yield Stocks Maintain Strong Dividend Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy AGNC?
Source: NASDAQ.COM
- AGNC's Stable Dividends: AGNC Investment has maintained its monthly dividend of 12.6% for over five years, with a 16% return on equity in Q4 2022, ensuring sustainability and attracting income-seeking investors.
- Ares Capital's Growth Potential: As the largest business development company, Ares Capital has delivered stable or increasing dividends for over 16 years, with a weighted average yield of 9.3%, and committed $5.8 billion in new investments last quarter, showcasing strong capital growth capabilities.
- Western Midstream's Cash Flow Advantage: Western Midstream Partners generated enough cash flow last year to cover its distributions and capital expenditures, with $95 million in excess free cash flow enhancing financial flexibility, and plans to achieve a 2.2% distribution increase by 2026 to support future payouts.
- Demand for High-Yield Stocks: With the S&P 500's dividend yield at a mere 1.1%, companies like AGNC, Ares, and Western Midstream offer yields above market averages, allowing investors to generate $314.7 in annual passive income from a $3,000 investment, appealing to those seeking high returns.
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Analyst Views on AGNC
Wall Street analysts forecast AGNC stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 9.840
Low
10.00
Averages
11.71
High
13.00
Current: 9.840
Low
10.00
Averages
11.71
High
13.00
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.
- Earnings Release Schedule: AGNC Investment Corp. will report its Q1 2026 earnings after market close on April 20, providing investors with insights into its financial performance and market conditions, which will aid shareholders in assessing the company's operational status.
- Shareholder Conference Call: The company will hold a shareholder conference call on April 21, 2026, at 8:30 AM ET, featuring a Q&A session that enhances interaction with investors, thereby increasing transparency and trust.
- Webcast and Recording Availability: AGNC encourages shareholders to participate via webcast, and will provide an audio recording and slide presentation post-meeting, ensuring that those unable to attend live can still access critical information, thus improving information accessibility.
- Investor Relations Contact: For further inquiries, shareholders can contact the Investor Relations department by phone, ensuring timely responses to investor questions and enhancing communication efficiency between the company and its shareholders.
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- REIT Overview: Realty Income owns over 15,500 properties across the U.S., U.K., and seven European countries, maintaining an occupancy rate above 96% since its 1994 IPO, with a projected increase to 98.9% by 2025, demonstrating its resilience and attractiveness in the market.
- AGNC Portfolio Characteristics: AGNC primarily invests in a $94.8 billion portfolio of mortgage-backed securities (MBS), generating profits mainly from interest income; despite a high dividend yield of 14.63%, its near-term earnings growth may face challenges due to interest rate fluctuations.
- Impact of Interest Rate Changes: As interest rates decline, Realty Income will be able to purchase new properties at lower costs and maintain high occupancy rates, while AGNC can sustain a high net interest rate spread in its MBS trades, attracting investors from lower-yielding deposit products to higher-yielding REITs.
- Yield Outlook Comparison: Realty Income expects its adjusted funds from operations (AFFO) per share to rise 2%-3% in 2026, easily covering its $3.24 annual dividend, while AGNC anticipates a 4% increase in earnings per share (EPS), but its uncertain market environment makes Realty Income's simpler business model less risky and more appealing.
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- High Occupancy Rates: Realty Income has maintained occupancy rates above 96% since its IPO in 1994, with the year-end rate rising from 98.6% in 2023 to 98.9% in 2025, demonstrating its ability to attract strong tenants even in challenging market conditions, thereby enhancing its competitive position.
- Yield Comparison: Realty Income offers a forward yield of 5.3%, with expected adjusted funds from operations (AFFO) per share rising 2%-3% to $4.38-$4.42 in 2026, comfortably covering its $3.24 per share dividend, showcasing its stable cash flow and investment appeal.
- AGNC's Earnings Challenges: AGNC boasts a higher forward yield of 14.6%, but its earnings per share (EPS) is only expected to grow 4% to $1.55 in 2026 due to market rate fluctuations, posing risks of short-term earnings instability that could affect its attractiveness.
- Market Environment Impact: As interest rates decline, Realty Income will find it easier to acquire new properties and maintain high occupancy rates, while AGNC faces challenges with short-term borrowing costs exceeding long-term yields, highlighting the differing market responses of the two companies under rate changes.
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- Earnings Release Schedule: AGNC Investment Corp. will report its first quarter 2026 earnings after market close on April 20, providing investors with insights into its financial performance and market conditions.
- Shareholder Conference Call: The company will hold a shareholder conference call on April 21, 2026, at 8:30 AM ET, featuring a Q&A session to enhance interaction with investors.
- Webcast Accessibility: AGNC encourages shareholders who do not plan to ask questions to utilize the webcast, improving information accessibility and ensuring more investors stay informed about company developments.
- Investor Relations Support: AGNC offers multiple contact methods for investor inquiries, demonstrating its commitment to shareholder relations and aiming to enhance investor trust and satisfaction.
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- High Dividend Yield: AGNC Investment currently pays a monthly dividend of $0.12 per share, yielding 14.2%, significantly higher than the S&P 500's 1.2%, allowing a $5,000 investment to potentially generate $3,542.40 in dividend income over the next five years.
- Stable Dividend History: The company has maintained its monthly dividend since early 2020, despite previously cutting it from $0.16 to $0.12, indicating resilience in its dividend policy amid high-risk conditions.
- High-Risk Business Model: AGNC invests in Agency mortgage-backed securities using leverage, achieving a return on equity of 16%, which exceeds its capital cost of 15.8%, suggesting its ability to sustain dividends remains intact.
- Future Income Potential: While AGNC's high dividend is at risk of reduction, investors can still expect substantial dividend income over the next five years, highlighting its appeal in high-yield investments.
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- Significant Dividend Yield: AGNC Investment boasts a dividend yield exceeding 14%, which is over ten times the S&P 500's 1.2%, indicating that a $5,000 investment could generate more than $3,542.40 in dividend income over the next five years, showcasing its attractiveness.
- Dividend Payment Stability: AGNC has maintained a monthly dividend of $0.12 since early 2020, despite historical cuts, suggesting a future inclination to maintain rather than grow dividends, reflecting its risk profile.
- High-Risk Business Model: AGNC invests in government-backed mortgage-backed securities on a leveraged basis, and while its current return on equity is 16%, above its 15.8% cost of capital, a deteriorating market environment could necessitate a dividend reset.
- Future Income Potential: Even if AGNC may cut its dividend, investors still have the opportunity to earn substantial dividend income over the next five years, highlighting its appeal in the high-yield stock segment despite the associated risks.
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