Is AGNC Investment a Buy Now?

Core Viewpoint - AGNC Investment offers a high dividend yield of 12.2%, but it is essential for investors to understand that it is a mortgage REIT (mREIT) focused on total returns rather than consistent dividend income, which may lead to disappointment if relied upon solely for yield [3][4][8][12] Group 1: Company Overview - AGNC Investment is a mortgage REIT that manages a portfolio of mortgage securities, similar to a mutual fund, and reports tangible book value per share [5] - Unlike traditional property-owning REITs, AGNC does not own physical properties but instead focuses on maximizing total returns through its mortgage security portfolio [4][6] Group 2: Dividend Comparison - Realty Income, a traditional property-owning REIT, has a reliable dividend yield of 5.3% and has increased its dividend annually for 30 consecutive years, making it suitable for investors seeking consistent income [2][3] - AGNC's dividend payouts have been highly volatile and have trended lower over the past decade, contrasting with Realty Income's stable dividend growth [10] Group 3: Investment Strategy - AGNC's strategy emphasizes total returns, which necessitates the reinvestment of dividends, potentially leading to lower income for shareholders who rely on dividends for living expenses [8][11] - Investors seeking total return may find AGNC appealing, but those prioritizing reliable and growing dividends should consider property-owning REITs like Realty Income [12]