AGNC Investment (NASDAQ: AGNC) offers a high dividend yield of over 14%, much higher than the S&P 500’s 1.2% yield. However, Starwood Property Trust (NYSE: STWD) also offers a compelling yield of nearly 11% with a more diversified portfolio. AGNC focuses on Agency residential mortgage-backed securities, while Starwood invests in a variety of assets, making it a safer option for income investors seeking stable dividends.

AGNC’s leveraged strategy can lead to high returns but also carries more risk, as evidenced by past dividend cuts. In contrast, Starwood’s diversified approach has led to stable dividends for over a decade, making it a better choice for a reliable income stream.

Read more at Nasdaq: Should You Forget AGNC Investment and Buy Starwood Property Trust Instead?