If You Like AGNC Investment, You Should Check Out These 2 Ultra-High-Yield Dividend Stocks

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Like AGNC Investment, Starwood Property Trust is simply a owe REIT. However, it has a precise antithetic concern strategy. Whereas AGNC invests solely successful Agency MBS (mortgage-backed securities guaranteed against recognition losses by authorities agencies specified arsenic Fannie Mae), Starwood has an progressively diversified portfolio. It has grown from a absorption connected commercialized mortgages to investing successful residential and infrastructure loans, arsenic good arsenic making existent property equity investments.

Starwood's diversification strategy provides 2 chiseled benefits. It helps trim hazard portion giving it the flexibility to prosecute the champion concern opportunities disposable astatine immoderate fixed time. The company's diversification has enhanced its quality to navigate the challenges of the existent property marketplace implicit the years. That has allowed it to wage a precise unchangeable dividend. Starwood has ne'er chopped its dividend successful its 15 years arsenic a nationalist institution and has maintained its existent dividend level for implicit a decade. AGNC Investment, connected the different hand, has chopped its dividend respective times since going nationalist successful 2008 and has maintained its existent outgo level lone since 2020.

The REIT's astir caller diversification determination was the $2.2 cardinal acquisition of Fundamental Income Properties past year. The woody provided it with an expandable portfolio of high-quality properties secured by semipermanent nett leases (17-year weighted-average lease presumption and 2.2% mean yearly rent escalations). It volition proviso Starwood with durable, rising income, further supporting its quality to support its 10.9% yielding dividend.

Starwood besides doesn't usage arsenic overmuch leverage arsenic AGNC, which helps little its hazard profile. It has a sub-3.0 times leverage ratio, compared to AGNC's much than 7x leverage ratio. While AGNC's higher leverage ratio boosts returns during a favorable marketplace environment, it tin person a antagonistic interaction erstwhile conditions deteriorate.