Forget AGNC Investment, Buy This Magnificent High-Yield Stock Instead

AGNC Investment (NASDAQ: AGNC) has a massive 15.7% dividend yield. In comparison, the 6.5% yield on offer from Bank of Nova Scotia (NYSE: BNS) seems tiny. But if you are trying to find a reliable dividend stock, you should probably go with the lower-yield stock here. This is why Bank of Nova Scotia is a better income option than AGNC Investment.

There's one big reason why dividend-focused investors should stay away from AGNC Investment and its gargantuan yield -- dividend cuts. In the graph below, the orange line represents this mortgage real estate investment trust's (REIT's) quarterly dividend. Notice that it rises sharply at the start of the graph and then falls steadily over the last decade or so. That's not so great if you are trying to live off the income your portfolio generates.