Better Ultra-High-Yield Dividend Stock: AGNC Investment vs. Ares Capital

By Matt DiLallo – Feb 13, 2026 at 12:15PM ESTKey PointsAGNC Investment and Ares Capital have huge dividend yields. AGNC has maintained its monthly dividend for the past five years. Ares Capital has delivered a stable or growing dividend over the last 16 years. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AGNCAGNC Investment Corp.Market Cap$12BToday's Changeangle-down(0.75%) $0.09Current Price$11.46Price as of February 13, 2026 at 1:48 PM ETThese two monster dividend stocks go head-to-head.AGNC Investment (AGNC +0.75%) and Ares Capital (ARCC +0.18%) have gigantic dividend yields. AGNC Investment's monthly dividend yields over 12.5%, while Ares Capital's quarterly payout yields 9.6%. Both are multiples above the S&P 500, which yields around 1.1% these days. Here's a look at which of these ultra-high-yielding dividend stocks is the better option for income investors right now. Image source: Getty Images. AGNC Investment: Dividend stability as long as market conditions don't deteriorate AGNC Investment is a mortgage REIT focused on investing in Agency MBS (pools of residential mortgages protected against credit risk by government agencies such as Fannie Mae). They're low-risk fixed-income investments with relatively low returns (low-to-mid single-digit yields). The mortgage REIT boosts its returns (and risk profile) by using leverage to invest in MBS (it had a 7.2 times leverage ratio at the end of the fourth quarter). This investment strategy can be very lucrative. As long as AGNC Investment's returns are above its cost of capital (operating costs and dividend payments), it can maintain its current dividend. The REIT has paid the same monthly dividend since 2020. ExpandNASDAQ: AGNCAGNC Investment Corp.Today's Change(0.75%) $0.09Current Price$11.46Key Data PointsMarket Cap$12BDay's Range$11.23 - $11.5452wk Range$7.85 - $12.19Volume288KAvg Vol20MGross Margin100.00%Dividend Yield12.65% The MBS market is currently strong. That drives the REIT's view that its returns and dividends should remain in alignment. However, if market conditions deteriorate, the REIT might need to reduce its dividend. That has happened several times in the past, including in 2020. Despite those cuts, AGNC has delivered an average annualized total return of 11.8% since its 2008 IPO, driven solely by its dividend. Ares Capital: A long history of stable and growing dividends Ares Capital is the largest BDC. It primarily makes direct loans to middle-market companies ($100 million to $1 billion in annual revenue). While these loans are riskier investments than Agency MBS, they also carry much higher interest rates (Ares' portfolio had a 9.3% weighted-average yield at the end of 2025). Further, Ares has done a masterful job underwriting loans and managing its investments over the years, as its annualized net realized loss rate is less than 0%. ExpandNASDAQ: ARCCAres CapitalToday's Change(0.18%) $0.04Current Price$19.50Key Data PointsMarket Cap$14BDay's Range$19.15 - $19.5452wk Range$18.26 - $23.63Volume117KAvg Vol5.4MGross Margin75.68%Dividend Yield9.86% The BDC also uses leverage to make additional debt investments. However, it has a relatively modest debt-to-equity ratio of 1.08. Ares Capital has a strong balance sheet, providing it with ample liquidity to continue expanding its portfolio. Ares Capital's large and growing loan portfolio has supported a stable and rising dividend. The BDC has now paid a stable or growing dividend level for more than 16 consecutive years. The company generates core earnings in excess of its dividends, enabling it to build up a cushion that could cover its dividend for more than two quarters. The company's growing earnings and dividends have helped it deliver a 12% annualized total return to investors over the past 20 years. More yield or more growth AGNC Investment and Ares Capital both pay high-yielding dividends supported by the interest income of their debt investments. AGNC's higher current yield and monthly payment schedule make it the better option for more risk-tolerant investors seeking income above all else. Meanwhile, Ares Capital offers a little more growth potential as it increases the value of its portfolio and raises its dividend, making it better for those seeking higher total returns. Read NextFeb 13, 2026 •By Reuben Gregg BrewerIs AGNC Investment Stock a Millionaire Maker?Feb 11, 2026 •By Leo SunThe 1 Stock I'd Buy Before AGNC Investment Right NowFeb 9, 2026 •By Matt DiLallo3 Monster Dividend Stocks With Yields of Up To 12.5%Jan 30, 2026 •By Geoffrey SeilerIs It Time to Buy AGNC And Its 12% Yield as Momentum Picks Up?Jan 29, 2026 •By Reuben Gregg BrewerIs AGNC Investment Stock a Buy Now?Jan 28, 2026 •By Matt DiLalloThis 12%-Yielding Dividend Stock Believes 2026 Will Be Another Exceptional YearAbout the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloStocks MentionedAGNC Investment Corp.NASDAQ: AGNC$11.46 (+0.75%) $+0.09Ares CapitalNASDAQ: ARCC$19.50 (+0.18%) $+0.04*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.