AGNC Investments (NASDAQ: AGNC) pays an eye-popping dividend. At over 14%, it's nearly 10x higher than the S 500's dividend yield (currently 1.5%).

However, as enticing as that payout might seem, income-focused investors are better off forgetting about the mortgage REIT. They'll likely make far more money in other high-yielding stocks, including MPLX (NYSE: MPLX). Here's why the 9.3%-yielding master limited partnership (MLP) is a better option for those seeking a strong total return (dividend income plus stock price growth).

Mortgage REITs like AGNC Investments have more in common with banks than traditional REITs. Instead of owning income-producing real estate, AGNC invests in mortgage-backed securities (MBS) guaranteed by government agencies. While those guarantees eliminate default risk, the REIT faces many other risks that can impact its income stream.

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Source Fool.com