3 Double-Digit-Yield Stocks to Buy That Earned Their Dividends Last Quarter
Key PointsAGNC Investment may have sufficient coverage now for its 16.7% dividend, but a continuation of current interest-rate trends could bode poorly for the mortgage rate.
Three mortgage real estate investment trusts (REITs) are highlighted in this story as potential double-digit yield stocks that maintain their dividends. AGNC Investment Corp. (AGNC), Annaly Capital Management (NLY), and Rithm Capital (RITM) are discussed, each with their own financial performance and dividend safety. AGNC reported a comprehensive loss of $1.28 per share but maintained a dividend coverage ratio of 1.08 times.
Annaly Capital Management also had GAAP losses but generated sufficient dividend coverage using earnings available for distribution (EAD). Rithm Capital stands out with a lower yield of 10.7% but shows greater dividend safety due to its diversification beyond mortgages. The article emphasizes that while these stocks offer attractive yields, investors should consider the risks associated with rising interest rates and potential dividend cuts.
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