Real estate
from24/7 Wall St.
4 hours agoThis High Yielding Stock Could Easily See Further Upside
AGNC Investment offers a 12.16% yield, recent strong price gains, and agency MBS exposure that reduces credit risk while delivering income and upside.
as they not only pay a fat yield but can also deliver upside. Utility companies are not directly exposed to tariffs, while being exposed to tailwinds from the AI buildout. Plus, ongoing interest rate cuts are adding another incentive for investors to buy and hold these stocks. Treasury yields are set to trend lower as a result of these rate cuts, so investors are naturally gravitating towards high-yield stocks.
If there is one thing we can all be sure of, it's that we all want to retire as soon as we possibly can. The goal is to either to make as much money as possible through working or invest smartly and end up with as much money as you can before finally deciding to call it quits from the workforce.
Interest rate cuts make high-yield dividend stocks more attractive because they reduce competition from fixed-income investments while lowering the companies' borrowing costs, which can support both dividend sustainability and stock price appreciation. At 24/7 Wall St., we attempt to evaluate the underlying business fundamentals and dividend sustainability before recommending companies to our readers. Often, remarkably high yields can sometimes indicate financial stress rather than opportunity, as was the case with Walgreens this year.
Reliable high-yielders are your best friends today, and they will likely remain that way for the coming years. That's especially true if they operate as midstream or as a utility. They have a rare combination of defense and growth that no other sector can match. Demand for electricity, gas, and water does not flutter when the headlines turn grim, so cash flow stays predictable and dividends stay funded.
BofA Securities is the investment banking and capital markets division of Bank of America, one of the largest financial institutions in the United States. The division provides a comprehensive range of services. These include equity and debt underwriting, mergers and acquisitions advisory, sales and trading, research, and capital markets solutions to corporate, institutional, and government clients worldwide. As a major player on Wall Street, BofA Securities competes with other bulge-bracket investment banks and maintains significant market share across various financial services sectors.