1 High-Yield REIT Stock to Buy Hand Over Fist and 1 to Avoid

Core Viewpoint - High-yield dividend stocks, such as AGNC Investment, may appear attractive but can be misleading for income-focused investors, who may find Realty Income to be a more reliable option for consistent income generation [1][10]. Group 1: AGNC Investment - AGNC Investment offers a nearly 15% yield, which may seem appealing but is not suitable for those seeking reliable income streams [1][6]. - The company operates as a mortgage real estate investment trust (REIT) that invests in complex mortgage securities rather than traditional properties, making it less predictable for income generation [2][3]. - Historical performance shows that while total returns may have been respectable, the decline in dividends and share price means that spending dividends would have resulted in a reduced income stream for investors [4][5]. Group 2: Realty Income - Realty Income is characterized by its consistent dividend growth, having increased monthly payouts for 30 consecutive years and quarterly dividends for over 100 quarters, making it a strong candidate for income-focused investors [7]. - As the largest net lease REIT with a portfolio of over 15,400 properties, Realty Income benefits from a diversified risk profile and an investment-grade-rated balance sheet, allowing for better access to capital [8]. - Despite being the largest player in the net lease sector, Realty Income has growth potential through its diverse property types and geographical spread, which supports steady growth [9].