58 Monthly Dividends Later and This Ultra-High-Yielder Still Isn't a Dividend Stock You Can Count On

Company Overview - AGNC Investment is a mortgage real estate investment trust (REIT) that aims for favorable long-term stockholder returns with a substantial yield component [2] - The company has a strong track record of total return, boasting a 10% annualized return since its IPO in May 2008 through to year-end 2024 [4] Dividend Performance - AGNC Investment has paid 58 consecutive monthly dividends at the same level since 2020, which may seem appealing to income investors [7] - However, the dividend has not increased with inflation, leading to a decrease in purchasing power for investors [8] - The dividend record prior to 2020 shows a long downtrend, which could result in a negative experience for income-focused investors [9] Total Return Analysis - The positive total return is attributed to AGNC Investment paying out more in dividends than the decline in stock price, allowing for long-term capital growth through dividend reinvestment [10] - This perspective on total return may not align with the typical income investor's expectations of reliable income [10] Investment Considerations - While AGNC Investment is a respected mortgage REIT, it may not be suitable for investors seeking to rely on dividends for living expenses [11] - The static dividend over the years does not guarantee reliability for income generation [11]