Investors Seek High-Yield Stocks Amid Market Sell-Off

In the wake of market fluctuations, dividend investors are exploring stable high-yield stocks. While AGNC Investment's lofty yield may attract interest, Realty Income and Toronto-Dominion Bank emerge as safer, more reliable options for income-focused portfolios.

Date: 11-05-2025

AI Rating: 6

Market Conditions and Investment Strategy
The current market sell-off has prompted investors, particularly those focused on dividends, to reevaluate their investment strategies. High-yield stocks often draw attention during turbulent times, but not all high yields are beneficial. In this analysis, AGNC Investment, Realty Income, and Toronto-Dominion Bank are examined from a professional investor's perspective.

AGNC Investment
AGNC Investment, a mortgage real estate investment trust (mREIT), offers a remarkable 16% dividend yield. However, there is a notable caution against investing in AGNC, as it requires a focus on long-term total returns rather than immediate income. The company's long-term goal is positive stockholder returns, but the persistent decrease in dividend and stock price over recent years has raised concerns. The historical trend suggests that relying on AGNC for income could result in lowered capital over time, especially if dividends are not reinvested.

This stock could receive a rating of 5, indicating a neutral outlook. While the yield can be enticing, the associated risks may overshadow the potential benefits for typical dividend investors seeking consistent income.

Realty Income (NYSE: O)
In contrast, Realty Income presents a more stable investment option, boasting a 5.6% dividend yield that has seen annual increases for three decades. The company's robust balance sheet and expansive portfolio of over 15,600 properties provide a solid foundation for future growth, which gives it a more reliable standing than AGNC. The stock's regular monthly dividends are a significant attraction, acting as a foundational income-generating asset in a portfolio.

Realty Income could receive a rating of 7. Its consistent performance and historical dividend increases make it a favorable choice for dividend-focused investors.

Toronto-Dominion Bank (NYSE: TD)
Toronto-Dominion Bank offers a yield of 4.7%. Despite facing regulatory challenges, this bank has demonstrated its resilience through consistent dividend payments since 1857. The current issues have led to lower growth projections, yet its foundational Canadian business remains strong and unaffected by the recent turmoil. Investors may want to view TD Bank's current situation as a short-term hurdle rather than a long-term detriment.

TD Bank could be rated a 6. Though it faces challenges, the underlying strength of its business model suggests it is still a decent investment for the cautious dividend investor.

Stocks: AGNC O TD