AGNC Yields More Than 3 Times the 10-Year Treasury. Is That Enough Extra Pay for the Risk?
AGNC's 17% yield looks tempting, but investors should review its total returns.
Overview
The 10-Year Treasury yield recently rose to 5.3%, its highest level since 2007. As a result, other fixed-income investments -- including bonds and CDs -- must raise their yields to remain competitive. Those low-risk yields will draw investors away from riskier dividend stocks.
However, dividend stocks that pay much higher yields than U.S. Treasuries could be better insulated from that rotation. So should you invest in AGNC (NASDAQ: AGNC), the mortgage real estate investment trust (mREIT) that pays a whopping forward dividend yield of 17%?
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Originally published at www.fool.com.
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