# High Yield ≠ Safe Yield: Why AGNC's 14% Dividend Might Be a Trap

AGNC Investment looks insane on paper—14% dividend yield, 10x higher than S&P 500. But here's the plot twist: this REIT has cut its dividend 4 times since 2014 (from $0.22 to $0.12 per share).

Why? AGNC only bets on Agency mortgage-backed securities using heavy leverage. When returns dip below its cost of capital, dividend cuts follow. High reward, high risk.

Starwood Property Trust (11% yield) plays a different game:
- 53% commercial real estate loans
- 19% direct property ownership (medical offices, housing)
- 10% infrastructure lending
- Recently acquired Fundamental Income for $2.2B, adding diverse net lease properties

The kicker? Starwood maintained its dividend rate for 10+ years, never cut it once. Same mortgage REIT model, but diversified enough to dodge the leverage trap.

Bottom line: AGNC chases returns, Starwood builds stability. For income investors who sleep at night, one's clearly better than the other.