Despite the S&P 500 index (^GSPC 1.24%) trading near record highs, you can still find good investment ideas in the financial sector. For those who like growth stocks, particularly dividend growth stocks, Visa (V +0.91%) could be a good choice. For yield-seeking investors, Dividend King Federal Realty (FRT 0.58%) should be strongly considered.
But dividend lovers shouldn’t get so enamored of AGNC Investment‘s (AGNC 2.04%) 13%+ dividend that they overlook this crucial fact about the company. It is well run, but it may not be the investment you expect based on that lofty yield.
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Visa’s valuation looks reasonable
Payment processor Visa has a long history of growth. Its business has expanded alongside the shift from cash to card payments. To put a number on that, in 2015 the company handled 71 billion transactions, up 9% year over year. In 2025, it handled 257.5 billion transactions, up 10% in a year. Visa’s growth is not slowing down, which helps explain why it is normally afforded a premium in the market.
However, the company’s price-to-sales and price-to-earnings ratios are both below their five-year averages right now. That hints that the stock is reasonably priced, if not a little cheap. The yield is fairly low at 0.8%, but the dividend has grown at an annualized rate of 17% over the past decade. If you are a growth investor or a dividend growth investor, you’ll probably want to dig into Visa’s story.
Today’s Change
(0.91%) $2.93
Current Price
$325.45
Key Data Points
Market Cap
$614B
Day’s Range
$322.97 – $329.00
52wk Range
$293.89 – $375.51
Volume
288K
Avg Vol
7.3M
Gross Margin
78.28%
Dividend Yield
0.80%
Federal Realty is the “King” of REITs
Federal Realty is an income stock, noting its attractive 3.9% dividend yield. That said, the real draw with this strip mall and mixed-use property landlord is consistency. Federal Realty is the only real estate investment trust (REIT) that is also a Dividend King, having increased its dividend annually for over five decades.
The REIT is focused on quality over quantity, with a portfolio of only around 100 properties. It takes a very active management approach, frequently buying, selling, and redeveloping assets. The end result is a portfolio with higher average population densities and higher average incomes than any of Federal Realty’s closest peers.
Federal Realty Investment Trust
Today’s Change
(-0.58%) $-0.66
Current Price
$113.16
Key Data Points
Market Cap
$9.8B
Day’s Range
$112.67 – $113.93
52wk Range
$89.99 – $117.22
Volume
1.1M
Avg Vol
870K
Gross Margin
38.34%
Dividend Yield
3.97%
Federal Realty isn’t an exciting business. It tends to be a slow-and-steady grower. But if you are looking for a reliable dividend stock, this REIT is hard to beat.
AGNC Investment isn’t a dividend stock
That said, don’t get so enamored of dividends that you overlook key dividend risks. For example, AGNC Investment has a huge 13%+ dividend yield, but it isn’t a particularly reliable dividend stock. As the chart below shows, the dividend has not only been volatile over time but has also been declining for more than a decade. The stock price has tracked the dividend both up and down.
What’s interesting is that AGNC Investment is not a bad investment or a troubled company. It is a fairly well-respected mortgage REIT. The dividend and price volatility are pretty normal for a mortgage REIT. And, if you reinvested the dividends over time, your total return would be roughly similar to that of the S&P 500 index. That’s a pretty impressive total return story, even if the stock is a less-than-desirable dividend story. AGNC Investment could be attractive to investors looking to diversify their portfolios.
Three finance options; two are reliable dividend stocks
Visa is a solid dividend growth stock that is still growing its business. Federal Realty is a slow-and-steady, high-yield stock with a proven business model. And AGNC Investment has a huge yield, but investors need to tread with caution because it’s really a total return investment. In the end, that’s three potential finance options. Just tread carefully with AGNC Investment, since it may not be what it seems at first glance.