Is This a New Bull Market? Is AGNC Investment the Best Dividend Stock for You?
There are sayings like, "It is always darkest before the dawn" and "Every cloud has a silver lining." Translating those to Wall Street would suggest that buying when things are bleak is a good idea. Sometimes that's true, but at other times it isn't. If you think now is a good time to buy downtrodden AGNC Investment (NASDAQ: AGNC) because you expect a market upturn in the near future, here's why you might want to think again.
AGNC's single biggest attraction for most individual dividend investors will be its massive 20% dividend yield. That's not a typo, but a yield that high has to be taken with a grain of salt. In many cases, such elevated yields are an indication of high risk. In this case, that risk is a broad concern over the sustainability of the dividend.
Image source: Getty Images.
Source Fool.com
