High-Yield Dividend Stocks: Smart Picks for Savvy Investors

The stock market has been on a roll, with the S&P 500 bouncing back from its April lows. But what's next? Experts say the sky's not the limit, but gains won't be as huge as before. So, where can investors find solid returns? High-yield dividend stocks might be the answer. Two companies stand out in this space: AGNC Investment and Rithm Capital. Both are real estate investment trusts (REITs), but they focus on different areas. AGNC is all about mortgage-backed securities, while Rithm has a mix of assets, including mortgage servicing rights and more. AGNC offers a whopping 15. 5% dividend yield, which is hard to ignore. The company pays out dividends monthly, which can be a game-changer for investors looking for steady income. But can AGNC keep up the good work? Its latest earnings show a mix of hits and misses, but analysts think the dividend is safe for now. Rithm Capital, on the other hand, has an 8. 4% yield. It's not as high as AGNC's, but Rithm has a stronger earnings base to back it up. Plus, the company has been growing fast, thanks to a big acquisition. Analysts love Rithm's diversified business model and see plenty of room for growth. Both companies have analysts cheering them on. AGNC has a "Moderate Buy" rating, while Rithm is a "Strong Buy. " But remember, high yields come with risks. Always do your homework before investing.