Is AGNC Investment Stock a Millionaire Maker?

AGNC Investment (NASDAQ: AGNC) has a huge 12.5% dividend yield right now. For comparison, the S&P 500 (SNPINDEX: ^GSPC) has a tiny 1.1% yield, and the average real estate investment trust (REIT) has a yield of 3.8%. But don't rush to buy shares thinking that you've found a no-brainer income opportunity. There's a lot more to understand here.A traditional REIT generates income by leasing out physical properties. That's a pretty simple business model to understand, and it generally provides reliable cash flows to support yields well above market rates. AGNC Investment doesn't do this. It buys and sells bond-like securities created by pooling mortgages together. That's very different, with AGNC operating more like a bond mutual fund than a traditional REIT.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool