1 Ultra-High-Yield REIT Stock to Buy Hand Over Fist and 1 to Avoid
For investors looking to live off the income they generate from their portfolios, dividend stocks with high yields tend to be extremely attractive. But investors need to tread with caution because a big yield alone doesn't make a stock a good investment. In fact, that high yield can even be a sign that there's potential trouble ahead for the dividend.
Here's why ultra-high-yielding Realty Income (NYSE: O) is a buy but AGNC Investment (NASDAQ: AGNC), with its even higher yield, is a stock to avoid.
Realty Income has trademarked the nickname "The Monthly Dividend Company." While the motto references how frequently the Dividend is paid, it's also a statement about how important the Dividend is to management and the board of directors. Notably, the Dividend of this real estate investment trust (REIT) has increased annually for 29 consecutive years. That doesn't happen by accident. It requires a strong business and an ingrained management ethos that transcends any individual CEO or employee.
Source Fool.com
