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3 Things You Need to Know If You Buy AGNC Investment Today


If you're on the lookout for a high-yield stock, you'll probably find the 17.7% dividend yield at AGNC Investment (NASDAQ: AGNC) highly attractive. But be careful: Historically, that yield has burned more than one investor. Here are three important things to know before you decide to buy AGNC Investment today.

Technically speaking, AGNC Investment is structured as a real estate investment trust (REIT). Traditional REITs are fairly simple businesses to understand, given that they own physical properties, rent them out, and pay dividends from the cash flows they generate along the way. While REITs can get themselves into trouble if they use leverage too aggressively or they own properties that are out of favor, such as offices are today, the REIT sector is a fairly predictable one where investors can find reliable and attractive dividend yields.

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Source Fool.com

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