AGNC Investment vs. Ares Capital: Which High-Yield Dividend Stock Reigns Supreme?

AGNC Investment and Ares Capital offer high dividend yields, with AGNC at 12.7% and Ares at 9.4%. AGNC primarily invests in mortgage-backed securities, while Ares is a business development company that lends to middle-market companies. Both are sensitive to interest rate changes, but in different ways. AGNC uses leverage to juice returns, while Ares focuses on extending loans to overlooked middle-market companies.