Prediction: 2 Stocks That Will Be Worth More Than AGNC Investment 10 Years From Now

Core Viewpoint - AGNC Investment's shares are expected to underperform compared to Prologis and Rexford Industrial over the next decade, particularly for investors seeking income and capital appreciation [1] Company Overview - AGNC Investment operates as a mortgage REIT, purchasing pooled mortgages into bond-like securities and earning the spread between the yield on these securities and its operating costs [2] - Prologis and Rexford are property-owning REITs focused on industrial assets, with Prologis having a diversified portfolio and Rexford concentrating on the Southern California market [6] Business Models and Growth Potential - Prologis and Rexford are actively growing their businesses through property acquisition, construction, and redevelopment, which is expected to increase their rental revenue over time [8] - In contrast, AGNC Investment's model is centered around financial transactions rather than business growth, limiting its long-term growth potential [12] Dividend Analysis - AGNC Investment offers a high dividend yield of 14%, but this is tied to its focus on total return through bond-like securities, which may not appeal to long-term dividend investors [4][10] - Prologis and Rexford have lower dividend yields of 3.6% and 4.2%, respectively, but they have a history of regularly increasing dividends as their businesses grow [11] Historical Performance - Over the past decade, AGNC Investment's shares have lost value, similar to the declines seen in Prologis and Rexford, which have also experienced significant price corrections [9][10] - The trend of expiring leases rolling over to new, higher rates for Prologis and Rexford appears to have peaked, leading to recent stock sell-offs [7]