Better Ultra-High-Yield Dividend Stock: AGNC Investment vs. Ares Capital
The Motley Fool
by newsfeedback@fool.com (Matt DiLallo)February 13, 2026
AI-Generated Deep Dive Summary
AGNC Investment (NASDAQ: AGNC) and Ares Capital (NASDAQ: ARCC) are two high-dividend stocks that stand out in today’s low-yield environment, offering returns far above the S&P 500’s 1.1% yield. AGNC Investment delivers a monthly dividend of over 12.5%, while Ares Capital provides a quarterly payout of 9.6%. These figures make both companies attractive options for income-focused investors seeking high yields. However, their structures and risks differ significantly, making careful consideration essential for those looking to invest.
AGNC Investment specializes in mortgage real estate investment trusts (REITs), focusing on agency-backed securities. This focus makes it highly sensitive to interest rate changes, which can impact its dividend stability. On the other hand, Ares Capital operates as a business development company (BDC), offering loans and equity investments to middle-market firms. Its quarterly dividends are typically consistent, but investors should be aware of potential risks such as capital结构调整or dilution.
Both companies offer exceptional yields, but they cater to different risk appetites and investment strategies. AGNC’s monthly payouts can provide steady cash flow for those comfortable with its volatility, while ARCC’s stability makes it a safer bet for more conservative income seekers. Understanding the market environment—especially interest rate trends—is crucial for maximizing returns and mitigating risks.
For investors prioritizing high dividends, both AGNC and ARCC are compelling choices. However, the decision hinges on individual risk tolerance, investment goals, and market conditions. Diversification across these or similar high-yield investments can also help manage portfolio exposure while capitalizing on attractive yields in a low-interest-rate landscape.
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Originally published on The Motley Fool on 2/13/2026