
Core Viewpoint - AGNC Investment offers a high dividend yield of 15.3%, but its inconsistent dividend history raises concerns about sustainability [1][2][4] Group 1: AGNC Investment Overview - AGNC Investment is a mortgage-focused real estate investment trust (mREIT) that primarily invests in mortgage-backed securities (MBS) [5] - The company has lowered its dividend payout three times in the past decade, indicating a lack of consistency in returns [4][8] - AGNC's strategy involves borrowing at low short-term rates to invest in higher-yielding MBS, but rising interest rates can negatively impact its profitability [6][7] Group 2: Comparison with Other REITs - Realty Income and Prologis have lower dividend yields compared to AGNC but are expected to provide more stable long-term returns [2][10] - Realty Income has consistently raised its dividend since 1970, while Prologis has not lowered its payout since 2009, showcasing their reliability [14][19] - Over the past decade, AGNC investors realized a total return of 65.6%, while Realty Income achieved 101.3% and Prologis 272.9% [11][12] Group 3: Future Outlook for Prologis and Realty Income - Prologis has a high occupancy rate of 95.2% in its logistics real estate portfolio, indicating strong demand and potential for future dividend increases [15] - Realty Income boasts a 98.5% occupancy rate and expects to maintain and raise its dividend payout, currently set at $3.22 per share [18] - Both companies have industry-leading credit ratings, allowing them to borrow at lower costs and maintain their dividend-raising streaks for the foreseeable future [19][20]