AGNC Yields More Than 3 Times the 10-Year Treasury. Is That Enough Extra Pay for the Risk?

AGNC, a mortgage REIT, offers a tempting 17% dividend yield, but the article warns investors that rising interest rates threaten its net interest margins and dividend sustainability. Despite the high yield, AGNC's stock has declined 14% over the past year and 46% over five years, resulting in negative total returns that offset dividend income. The article suggests that risk-free Treasury yields of 5.3% may be more attractive than AGNC's risky dividend stock.