Why Dividend Investors Should Buy the Vanguard Dividend Appreciation ETF Instead of AGNC Investment

From Nasdaq: 2025-06-09 05:13:00

AGNC Investment offers a high dividend yield of over 15%, but history suggests investing in the Vanguard Dividend Appreciation ETF with a modest 1.8% yield may be more beneficial. AGNC Investment is a mortgage real estate investment trust that trades mortgage securities, while the ETF tracks the S&P U.S. Dividend Growers index, focusing on companies with consistent dividend growth. While AGNC Investment has provided a slightly better total return, its dividends have decreased over time, unlike the ETF’s increasing payouts. For sustainable income and growth, the Vanguard Dividend Appreciation ETF may be a better choice for investors.



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