Dominion Bank(TD) The Motley Fool·2025-05-31 08:14Core Viewpoint - The article argues that despite AGNC Investment offering a high dividend yield of over 16%, Toronto-Dominion Bank (TD) is a more reliable investment due to its stable dividend history and lower risk profile [1][7]. Company Analysis: AGNC Investment - AGNC Investment is a mortgage real estate investment trust (REIT) that invests in mortgage-backed securities, aiming to profit from the interest collected versus its operating costs [2]. - The company's dividend has been in decline for years, indicating potential instability in its income generation [4]. - Although AGNC has paid out more in dividends than it has lost in share price, this does not align with the typical expectations of dividend investors who seek stable and growing dividends [6]. Company Analysis: Toronto-Dominion Bank - Toronto-Dominion Bank offers a lower dividend yield of 4.5%, but it has a consistent dividend history, having not cut its dividend during economic downturns like the Great Recession [7]. - The current dividend yield is relatively high compared to the S&P 500's 1.3% and the finance industry's 2.7%, and it is historically significant for TD Bank [9]. - TD Bank's U.S. operations face regulatory challenges due to weak internal controls against money laundering, which has affected its growth prospects in the U.S. market [10]. - Despite these challenges, TD Bank remains a strong financial institution with reported earnings that exceeded Wall Street expectations, indicating resilience [11]. Investment Recommendation - The article advises against chasing high yields like that of AGNC Investment, suggesting that investing in TD Bank could provide a more reliable income stream and potential for stock price recovery [12].