Dividend Strategy: AGNC Investment vs. Federal Realty
27
2
BTCCSquare news:
Yield-chasing often backfires for dividend investors, as evidenced by the stark contrast between AGNC Investment's 15.6% yield and Federal Realty's 4.3% payout. Mortgage REITs like AGNC operate in specialized fixed-income markets, leveraging mortgage-backed securities rather than physical assets. This complexity creates volatility that contradicts most income investors' objectives.
Federal Realty's retail-focused property portfolio demonstrates the power of predictable cash flows. While REITs universally prioritize distributions, traditional equity REITs align better with long-term wealth building. The 3x yield differential reflects risk, not opportunity - a lesson hard-learned by yield-hungry investors during rate shocks.
By:
