Should You Forget High-Yield AGNC Investment and Buy W.P. Carey Instead?

Core Viewpoint - AGNC Investment is considered an unreliable dividend payer despite its high yield of 13.7%, while W.P. Carey, despite a recent dividend cut, is viewed as a more stable option for dividend investors with a yield of 5.5% [1][2][15]. Group 1: AGNC Investment - AGNC Investment is a mortgage real estate investment trust (mREIT) known for offering extremely high yields, currently at 13.7% [6][7]. - The company's dividend payouts have been highly volatile over time, with a trend of decreasing payouts in recent years, making it less reliable for income generation [9][15]. - The nature of mREITs involves managing a portfolio of mortgage-backed securities, which adds complexity and risk to dividend stability [7][10]. Group 2: W.P. Carey - W.P. Carey cut its dividend in 2023 after nearly 25 years of consecutive annual increases, a decision made to strategically exit the troubled office sector [11][13]. - Following the dividend cut, W.P. Carey quickly resumed raising its dividend, indicating a strong recovery and growth potential, with management increasing its full-year forecast after the third-quarter earnings announcement [13][14]. - The company has redirected funds from property sales into new industrial, warehouse, and retail properties, enhancing its growth trajectory [13][14].