11 Best REIT Stocks To Buy Under $10

6. AGNC Investment Corp. (NASDAQ:AGNC)

Share Price as of October 26: $9.93

Number of Hedge Fund Holders: 19

AGNC Investment Corp. (NASDAQ:AGNC) is an internally managed mortgage REIT founded in 2008. The firm is a leading investor in Agency residential mortgage-backed securities which are guaranteed by a US government-sponsored enterprise. It also invests in other mortgage and mortgage-related securities including non-Agency residential and commercial MBS, credit risk transfer securities, and assets related to the housing, mortgage, or real estate markets not guaranteed by a government agency.

AGNC focuses on Agency MBS which has government support, substantial yield opportunity, and a highly liquid market to offer. Furthermore, the company’s dividend-driven total stock return since its IPO in 2008 has surpassed those of comparable indices and other yield-oriented alternatives. With more than $13 billion of common stock dividends paid since inception, AGNC is a source of substantial monthly dividend income.

In the third quarter of 2024, the REIT generated a strong economic return of 9.3%. This was driven by a strong book value growth and the monthly dividend which has been stable at $0.12 per common share for 55 consecutive months. AGNC is also looking forward to a more positive outlook for Agency MBS considering the Fed’s recent rate cut and a positive direction of the broader economy.

AGNC Investment Corp. (NASDAQ:AGNC) is in a good position to continue offering strong dividend-driven total returns over the long run. The Agency-focused business model has also been resilient against market cycles which deems the REIT durable. As of Q2, the stock is held by 19 hedge funds.