AGNC Keeps Losing Ground on This Key Metric
AGNC Investment (NASDAQ: AGNC) is offering shareholders a nearly 14% dividend yield. That's a number that dividend investors should find both alluring and worrisome. Before you buy this ultra high-yield real estate investment trust (REIT), you need to understand what it does and why a key metric trending lower is a big problem.
AGNC is a mortgage REIT. This is very different from most REITs, which own physical properties. Owning a building and renting it out to others is something that just about any investor can grasp with relative ease. Mortgage REITs invest in, as their name implies, mortgages and not physical properties. In the case of AGNC, it owns mortgages that have been pooled together into tradable securities often called something like a collateralized mortgage obligation (CMO).
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Source Fool.com
