High-Yield Showdown: AGNC Investment vs. W.P. Carey

Almost by definition, income investors pay a lot of attention to dividend yield. There's nothing wrong with that, but it shouldn't be the only thing that an investor considers. The company behind the dividend is equally important to think about.This fact is highlighted by a comparison of AGNC Investment (NASDAQ: AGNC) and its 15%-plus yield and W.P. Carey (NYSE: WPC) and its roughly 6.3% yield. Here's why most dividend investors will probably prefer the lower yield.AGNC Investment and W.P. Carey are both real estate investment trusts (REITs), a corporate structure that is designed to pass income to investors in a tax-advantaged manner. So long as a REIT distributes at least 90% of its taxable earnings out to investors, it will avoid corporate-level taxation. That's a huge benefit on the income front, but investors need to recognize that REIT dividends are taxed like regular income. So this is a good deal for investors, but perhaps there are some drawbacks, too.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool