Two mortgage REITs yield over 16% amid sharp share price drops, signaling high risk for income investors.

Two major mortgage REITs, AGNC Investment and Annaly Capital, now offer forward yields above 16% due to significant share price declines exceeding 12% in a month. Despite the attractive yields, both companies show warning signs such as thin dividend coverage, high leverage, and share dilution, raising concerns about dividend sustainability. Investors should watch upcoming quarterly reports closely to assess if earnings and cash flow can support these high payouts. The article also highlights risks in other income stocks like Kraft Heinz and AT&T, emphasizing that high yield alone is not a reliable buy signal without strong financial coverage.

AGNC Investment Corp holds a market cap of $10.29 billion and a dividend yield of 16.59% on Pluang as of Oct 14, 2026 01:02 WIB, while Annaly Capital Management has a market cap of $13.79 billion and a dividend yield of 16.4%. Despite their high yields, AGNC saw a 2.02% price drop and Annaly declined 2.13% on the same day. Pluang order activity shows a majority of selling for AGNC at 64%, contrasting with 100% buying interest in Annaly, reflecting differing investor sentiment toward these mortgage REITs.