1 Magnificent High Yield Stock Down 33% to Buy and Hold Forever

Wall Street is in an uncertain state right now, thanks to what looks like the start of a tariff-driven trade war of global proportions. Some investors are, quite reasonably, frightened and looking for a safe harbor, like Coca-Cola (NYSE: KO). That's why the stock has risen while the market has swooned.Other investors are likely to see the market declines as an opportunity to get aggressive and buy, perhaps picking up an ultra-high-yield stock like AGNC Investment (NASDAQ: AGNC). This stock now has a massive 16% dividend yield. It's better to cut the middle and go with a different type of investment.AGNC Investment's gargantuan yield could be a siren call to dividend investors who think they are picking up a stock that will provide them with reliable income for the rest of their lives. Given that the yield alone is 60% higher than the 10% return most investors expect from the stock market, it seems like a no-brainer choice to sit back and collect a huge monthly dividend check during a market panic.Continue reading

Apr 12, 2025 - 08:23

1 Magnificent High Yield Stock Down 33% to Buy and Hold Forever

Wall Street is in an uncertain state right now, thanks to what looks like the start of a tariff-driven trade war of global proportions. Some investors are, quite reasonably, frightened and looking for a safe harbor, like Coca-Cola (NYSE: KO). That's why the stock has risen while the market has swooned.

Other investors are likely to see the market declines as an opportunity to get aggressive and buy, perhaps picking up an ultra-high-yield stock like AGNC Investment (NASDAQ: AGNC). This stock now has a massive 16% dividend yield. It's better to cut the middle and go with a different type of investment.

AGNC Investment's gargantuan yield could be a siren call to dividend investors who think they are picking up a stock that will provide them with reliable income for the rest of their lives. Given that the yield alone is 60% higher than the 10% return most investors expect from the stock market, it seems like a no-brainer choice to sit back and collect a huge monthly dividend check during a market panic.