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DailyBubble News

Forget AGNC Investment, Buy This Magnificent Dividend Growth Stock Instead

If you are a dividend investor looking for high yield stocks, you may be considering AGNC Investment or Rexford Industrial. AGNC has a huge 15% dividend yield, while Rexford offers a more modest 3.7% yield. However, when comparing the two stocks, it’s important to look at their business models and dividend histories.

AGNC Investment is a mortgage real estate investment trust (REIT) that buys mortgage bonds, making it more like a mutual fund than a typical REIT. On the other hand, Rexford is a typical REIT that buys physical properties and leases them out, focusing on industrial properties in Southern California.

When it comes to dividend history, AGNC’s dividend has been volatile over time, with a general decline in recent years. On the other hand, Rexford has increased its dividend annually for 11 years, with a 16% annualized growth rate over the past decade.

While AGNC may offer a higher current yield, Rexford’s yield on purchase price has increased significantly over time. This makes Rexford a more compelling option for long-term dividend investors, especially those looking to live off of their dividends in retirement.

In conclusion, AGNC may be suitable for institutional investors focused on total return, while Rexford is a better choice for dividend investors. Despite its lower current yield, Rexford has proven to be a more reliable dividend stock. Additionally, with Rexford’s historically high yield today, now could be a good time to consider buying the stock.

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