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The Best High-Yield Stocks to Buy With $1,000 Right Now
The Motley Foolยท2025-10-26 10:00

Core Viewpoint - Investors should prioritize the quality of the business over high dividend yields when selecting dividend stocks, as a high yield may mask underlying issues within a company [1]. Group 1: Federal Realty (FRT) - Federal Realty is a Dividend King REIT, having increased its dividend annually for over five decades, making it the only REIT to achieve this status [5]. - The current dividend yield for Federal Realty is 4.5%, which is lower than AGNC Investment's 14% yield, but its reliable income stream is more suitable for investors needing consistent returns [5]. - Federal Realty's market capitalization is $9 billion, with a current price of $101.30 and a gross margin of 38.91% [4]. Group 2: Rexford Industrial (REXR) - Rexford Industrial focuses on industrial assets in Southern California, a market known for strong performance and supply constraints [8]. - The current dividend yield for Rexford is approximately 3.9%, which is lower than AGNC Investment's yield, but Rexford has consistently increased its dividend for over a decade [9]. - Rexford's market capitalization is $10 billion, with a current price of $42.20 and a gross margin of 46.12% [12]. Group 3: Bank of Nova Scotia (BNS) - Bank of Nova Scotia offers a dividend yield of 4.9% and is one of the largest banks in Canada, benefiting from a highly regulated environment [16]. - The bank is currently in a turnaround phase, focusing on refining its non-Canadian operations while expanding its presence in the U.S. [18]. - Bank of Nova Scotia has a market capitalization of $80 billion, with a current price of $64.78 [17]. Group 4: AGNC Investment - AGNC Investment is a mortgage REIT that has shown volatility in its dividend payments, making it less reliable for investors seeking consistent income [20]. - Despite being well-managed, AGNC's historically high dividend yield does not compensate for its volatility, making it less suitable for those needing stable dividends [20]. - Investors are advised to consider more reliable options like Federal Realty, Rexford, or Bank of Nova Scotia instead of AGNC [21].