Realty Income and AGNC Investment are real estate investment trusts. AGNC has a 13% yield, while Realty Income’s is 5.6%. Investors seeking dividend income should be cautious. Realty Income owns 15,500 properties, with an investment-grade balance sheet. Its 30-year track record of annual dividend increases and 5.6% yield make it a foundational high-yield investment option.

AGNC Investment’s 13% yield may seem attractive, but reinvesting dividends is crucial for total return. Dividends have been volatile and decreasing, impacting stock price. AGNC’s business model focuses on mortgage bond-like investments, leading to volatile dividend payouts. Understanding the business is key before investing for income.

Reuben Gregg Brewer has positions in Realty Income, which has a reliable 5.6% yield with a 30-year history of annual dividend increases. AGNC Investment’s 13% yield may seem tempting, but its volatile dividend payouts and focus on mortgage securities make it a riskier option for dividend investors.

Read more at Yahoo Finance: Should You Forget AGNC Investment and Buy Realty Income Instead?