Better Dividend Stock: Federal Realty vs. AGNC Investment

Federal Realty Investment Trust (NYSE: FRT) and AGNC Investment (NASDAQ: AGNC) are both structured as real estate investment trusts (REITs). But that's where the similarities end. However, comparing these two dividend payers is actually quite important because it highlights the difference between investing for yield and investing to create a reliable income stream. Here's what you need to know before you buy either one of these high-yield stocks.Federal Realty is actually a pretty simple company to understand. It owns strip malls and mixed-use properties, an asset type that usually includes retail, housing, and office space. It leases out the properties it owns to tenants and collects rents. The REIT has a focus on quality over quantity, owning only about 100 properties or so. That's a bit different from its peers, which usually focus on growth through acquisition. In addition, Federal Realty has a knack for development and redevelopment, so it is always working on some construction project that will enhance the value of its assets.All in, however, Federal Realty is your run-of-the-mill REIT. At least until you consider the dividend. The dividend yield is roughly 4%, which is a little above the REIT average and much higher than the 1.2% or so yield offered by the S&P 500 index. But still, Federal Realty is hardly sporting a shockingly high yield. What sets Federal Realty apart from every other REIT is that it has increased its dividend annually for 57 consecutive years. That's the longest streak of any REIT and makes the company a Dividend King. It is the only REIT that is a Dividend King.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool