Better Dividend Stock: Federal Realty vs. AGNC Investment

Core Viewpoint - The article discusses the trade-off between high dividend yields and associated risks, comparing AGNC Investment and Federal Realty as investment options for dividend investors [1][5]. Dividend Yield Comparison - AGNC Investment offers a dividend yield of over 15%, significantly higher than Federal Realty's 3.9% yield [2][4]. - AGNC's yield is more than 10 times the S&P 500's yield of slightly less than 1.2% and far exceeds the average REIT yield of 3.7% [3]. Dividend Reliability - Federal Realty has increased its dividend annually for 57 consecutive years, making it a member of the elite Dividend Kings [5][6]. - In contrast, AGNC's dividend has remained static at $0.12 per share per month since April 2020, following previous reductions [6][7]. Business Models - AGNC Investment operates as a mortgage REIT, owning pooled mortgages and earning income from the difference between costs and interest on mortgage securities [9][12]. - Federal Realty, on the other hand, owns strip malls and mixed-use developments, leasing properties to tenants and collecting rents, which is a more straightforward business model [11][12]. Investment Purpose - AGNC aims to provide a high total return, which differs from the goal of providing a reliable and growing income stream [12][13]. - For investors seeking consistent dividends, Federal Realty is presented as a better option due to its reliable dividend history [14].