Could Buying Ultra High-Yield AGNC Investment Stock Today Set You Up for Life?

By Reuben Gregg Brewer – Dec 17, 2025 at 2:05AM ESTKey PointsAGNC Investment is a mortgage real estate investment trust.The mREIT owns a portfolio of mortgages that have been pooled into bond-like securities.If history is any guide, dividend investors should tread with caution when considering the stock's substantial 14% dividend yield.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AGNCAGNC Investment Corp.Market Cap$11BToday's Changeangle-down(-0.29%) $0.03Current Price$10.33Price as of December 16, 2025 at 4:00 PM ETAGNC Investment has a shockingly high 14% dividend yield; make sure you understand the risks before buying it, thinking you've set yourself up for a lifetime of income.AGNC Investment (AGNC 0.29%) has done a fairly good job of meeting its long-term business goals. The problem for investors is perception, because the stock's 14% dividend yield can obscure how the stock is viewed. Here's why AGNC Investment, despite its huge yield, may not set you up for life if you are a dividend investor. What does AGNC Investment do? AGNC Investment is a real estate investment trust (REIT). The conventional view of REITs is that they are designed to generate a reliable income stream for investors. A great example of how reliable REITs can be at paying dividends comes from Federal Realty (FRT 0.78%), a Dividend King. Essentially, the strip mall and mixed-use landlord has increased its dividend annually for more than 50 consecutive years. Image source: Getty Images. Add in a 4.5% dividend yield, and Federal Realty could be an attractive stock for a dividend-focused investor. Federal Realty has the longest dividend streak of any REIT, so it is a cherry-picked example of success. Still, more aggressive investors might argue that a REIT with a 14% yield would be even more attractive. There's an important distinction. Federal Realty is a property owning REIT, while AGNC Investment is a mortgage REIT. The mREIT space is a specialized niche within the broader REIT sector, operating in a distinct manner.

While Federal Realty manages a portfolio of physical properties, AGNC manages a portfolio of mortgages that have been pooled into bond-like securities. In many ways, it operates more like a mutual fund, buying and selling the mortgage securities it owns. The company's goal is to generate higher returns from its investments in mortgage securities, primarily through interest payments, than it costs to operate the business. The major expenses are employee costs and interest, some of which are derived from loans backed by its portfolio of mortgage securities. AGNC is way more complex than a REIT that buys a property and leases it out to a tenant. You probably shouldn't buy AGNC if you aren't willing to do a little extra legwork as an investor.Advertisement ExpandNASDAQ: AGNCAGNC Investment Corp.Today's Change(-0.29%) $-0.03Current Price$10.33Key Data PointsMarket Cap$11BDay's Range$10.31 - $10.4152wk Range$7.85 - $10.67Volume12MAvg Vol21MGross Margin100.00%Dividend Yield13.94% The real problem with AGNC's dividend If you go to AGNC's investor website, you'll see its objective clearly spelled out: "Favorable long-term stockholder returns with a substantial yield component." The goal is not to pay a high yield; it is to generate strong returns. In other words, AGNC Investment is really focused on total return, which assumes the reinvestment of dividends. Management has done a solid job of achieving its total return goal, as shown in the chart below. However, while the orange line (total return) is compelling, the purple (share price) and blue lines (dividend) are a little troubling. AGNC data by YCharts Not only is the dividend highly volatile, but it has been trending lower for years. The stock price, meanwhile, has trended along with the dividend over time. If you spent the dividends you collected from AGNC instead of reinvesting them, you would now be generating less income and have seen a material decline in your capital. Most dividend investors are seeking companies that pay sustainable, if not growing, dividends. The problem with AGNC isn't the company's objective. Total return is a completely valid and acceptable goal. The problem is that the "substantial yield component" involved in reaching that goal leads investors to view the stock as a dividend stock. What can AGNC Investment set you up for? If you buy AGNC Investment thinking you've set yourself up for a lifetime of reliable income, you have probably set yourself up for disappointment. If you buy it with the goal of adding a bit of diversification to a portfolio centered around total return, however, it could be a solid option for you. At the end of the day, the key is to ensure you understand what you are buying with AGNC.About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerRead NextDec 10, 2025 •By Reuben Gregg BrewerShould You Forget High-Yield AGNC Investment and Buy W.P. Carey Instead?Nov 30, 2025 •By Courtney CarlsenShould You Buy AGNC Investment While It's Below $11?Nov 29, 2025 •By Reuben Gregg BrewerTrump Floats 50-Year Mortgages: Here's What This Means for Real Estate and Banking StocksNov 26, 2025 •By Matt DiLalloIs AGNC Investment Stock a Buy Now?Nov 22, 2025 •By Matt DiLalloShould You Forget AGNC Investment and Buy Starwood Property Trust Instead?Nov 17, 2025 •By Reuben Gregg BrewerWhere Will AGNC Investment Be in 3 Years?