It is tempting to reach the return if you are an investor of profit distributions. I know, I did it. I am sorry to make the decision more times than I am interested in confessing. That is why I own Federal Federal Investment Fund (NYSE: FRT) Not AGNC Investment (Nasdaq: Agnc)Despite the fact that the latter’s profit is three times larger! Here is why it is very important to know what you want when you look at very high profit distribution stocks like Agnc Investment.
From a high -level point of view, AGNC’s investment is Real estate investment fund (Reet). Real estate investment funds are designed to pass income to investors and have large profit returns in general. I love real estate investment funds and have a few of them. However, Agnc Investment is not an old Reit. It is a mortgage, a mortgage, and it is a place in the wider Rit sector.
Real estate investment funds (Mreits) are relatively complex investments compared to the process of real estate investment funds. Although you will do the same basic thing as Rit possessing real estate if you invest in a rented property, real estate investment funds such as the AGNC Investment portfolio for the securities that were created by collecting real estate loans. It is possible that you cannot do the same as this Reit, which it is best to look at as a joint box.
The complexity is one issue, which I can overcome in time. But the real problem is that the Agnc Investment priorities as the owner of Mreit differ from the mine as a profit distribution investor. Take a look at the graph below. The total return was strong, but this assumes the re -investment of profits. Meanwhile, profit distributions were very volatile, and the stock price was mainly tracked with profit distributions over time. The latest direction for both of them.
There is nothing wrong with Agnc investment. In fact, it is doing a very strong job to create value for investors over time, assuming that you are investing profits. It is just that the value created in the form of a total return, not a reliable income flow. I am not looking for shares that require me to distribute profits to achieve strong returns. I want to have shares that have reliable and growing profits that I can use to pay for living expenses when I retire. The growing works, which are likely to lead to a high price of the share over time, are secondary positive. This is what Federal Realty provides me.
https://s.yimg.com/ny/api/res/1.2/ww_YXb5GhAIDLHihIyIWiA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD03OTg-/https://media.zenfs.com/en/motleyfool.com/b9128131fbe521f6d0638309868abc1f
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