Today I would like to introduce a stock that plays a very special role in my portfolio - not because of its huge price potential, but because of its constant monthly cash flow: AGNC Investment Corp. $AGNC (+0.18%)

I am invested here and am even considering adding more. For many, AGNC is too special or too risky - for me, it is a targeted component of my dividend strategy that delivers exactly what I expect from it: monthly income with a dividend yield of over 13%.

What does AGNC do?

AGNC is a so-called mREIT (mortgage real estate investment trust), specializing in agency-backed mortgage-backed securities - i.e. mortgage securities that are backed by the US government (e.g. Fannie Mae, Freddie Mac). Compared to other mREITs, the risk is therefore somewhat cushioned because the state is liable in the event of an emergency.

AGNC earns money through the difference in interest rates between short-term financing and long-term mortgage securities - basically like a bank, but highly leveraged.

Why I consciously hold AGNC:

🔸 Monthly dividend

This is a real plus point, especially for income investors like me: cash flow every month - predictable and regular. It almost feels like a small salary bonus.

🔸 Yield currently over 13 %

Sure: dividends like this don't come without risk, but I see AGNC as a controlled income generator in the portfolio. It is important to be aware of where the yield comes from - and to understand the business model.

🔸 Agency bonds = government-backed

A crucial point for me: AGNC invests almost exclusively in mortgages guaranteed by the US government. That makes a huge difference compared to many other mREITs that go into high-risk securities.

🔸 Many years of experience & management

AGNC has been around since 2008, survived the financial crisis and has been paying monthly dividends ever since. Experience counts in this asset class - and it is available here.

What you need to know:

Of course, AGNC is not a defensive stock. Prices can fluctuate, especially when the FED changes interest rates. Therefore: For me, this is not a basic investment, but a strategic income component that I deliberately combine with more stable stocks such as Unilever, J&J or Pepsi.

📈 My conclusion:

AGNC is certainly not for everyone - but if you're looking for regular, high distributions and keep an eye on the interest rate landscape, you could have an interesting income tool in your portfolio here.

I'm staying invested here, taking the monthly dividend with me - and taking the opportunity to buy more when the share price falls.

What do you think of mREITs like AGNC? A strategic addition or a red rag? I look forward to your opinions!

#dividend
#dividendetf
#dividende
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$AGNC (+0.18%)

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I myself get the most from $AGNC (+0.18%)

Dividends are an important part of the investment strategy for many investors. But while some swear by regular payouts, others take a critical view of dividends. In this article, we take a closer look at the pros and cons of dividends.

✅ Advantages of dividends

📈 Passive income

Dividends provide regular income without having to sell shares. They are particularly attractive for long-term investors or as a supplement to a pension.

🏛 Stable companies

Many companies with a long dividend history (e.g. Coca-Cola, Johnson & Johnson) are established, profitable companies with solid business models.

🔄 Reinvestment & compound interest effect

By reinvesting dividends (e.g. via a savings plan), capital can grow exponentially in the long term.

📉 Protection in times of crisis

Dividend stocks are often less volatile than pure growth stocks and offer a certain degree of stability in the portfolio.

❌ Disadvantages of dividends

🚀 Slower growth

Companies that pay high dividends often invest less in their growth. Tech stocks such as Amazon or Tesla do not pay dividends, but are growing rapidly.

💰 Tax burden

In Germany, dividends are subject to withholding tax (26.375% incl. solidarity surcharge, church tax if applicable), which reduces the net yield.

🔻 No guarantee on distributions

Dividends are not guaranteed! Companies can reduce or cancel them if it is economically necessary (e.g. in times of crisis).

📊 Focus on incorrect key figures

Some investors are dazzled by high dividend yields without paying attention to the financial stability of the company. An excessively high payout ratio can be a warning signal.

🔎 Conclusion

Dividends offer stability and passive income, but are not a panacea. A good strategy can be a mix of dividend and growth stocks, depending on your personal investment objective. Anyone investing in dividend stocks should not only be guided by the yield, but should also check the quality of the company and the sustainability of the distributions.

💬 How do you feel about dividends? Do you rely on distributions or do you prefer pure growth?

$NOVO B (-7.43%)
$PEP (+0.46%)
$AGNC (+0.18%)
$HAUTO (-1.91%)
$KO (+0.44%)

#etfs
#dividend
#dividende
#cashflow
#aktien

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