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American Capital Agency Corp. (AGNC), Exelon Corporation (EXC): 5 Diversified Dividend Stocks for Income Investors

Most income-oriented investors are hardly convinced about the safety of their investments in stocks, given the highly volatility in trading. However, the investment risk is substantially reduced in large-cap dividend companies due to their relatively solid and stable financials. Investing in dividend stocks may not make someone rich overnight, but it can help provide a good retirement portfolio. So, for conservative investors looking for safer investments for their retirement, high-yielding large cap dividend stocks are the ideal choice. Five of my favorite dividend stocks are listed as follows.

One risky REIT

American Capital Agency Corp. (NASDAQ:AGNC)

American Capital Agency Corp. (NASDAQ:AGNC) is a mortgage real estate investment trust (REIT) that is involved in the investment of agency securities. It has a market capitalization of $10.9 billion with a P/E ratio of 11.65. American Capital Agency Corp. (NASDAQ:AGNC) posted revenue of $1.08 billion, while its net income was $854 million.

The company is currently suffering from the Federal Reserve’s “Operation Twist.” Its dividend is down. As the margin between short-term and long-term interest rates shrink, it is likely to offer another dividend cut. While its yield is still at double-digit levels, the stock is probably the riskiest in the list as its distributions are highly volatile.

Two energy giants

Unlike American Capital Agency Corp. (NASDAQ:AGNC), utility stocks do not have anything to do with the Federal Reserve. Their customer base and revenues are pretty stable. Since their growth potential is limited, they mostly share profits with shareholders.

Exelon Corporation (NYSE:EXC) is one of those utility dividend stocks. It is a leading competitive energy provider in the U.S. with expansive operations across several states. It boasts of having one of the country’s low-cost and clean energy fleet with about 34,700 megawatts of owned capacity.

It has a strong market capitalization of $26 billion. The P/E ratio of 30.94 is a bit high due to one-time events, but I expect this to match up with the industry by next year thanks to earnings growth. The company posted revenue of $24.8 billion with quarterly revenue growth of 29.7% year-over-year. It posted net income of $956 million with diluted earnings per share of $1.12. Exelon Corporation (NYSE:EXC)’s current yield is 3.57%, and the annualized dividend is $1.24 per share. The company reduced its dividend substantially in last year, but I expect the dividend to recover along with the stock price.

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