For any new readers, there are only 3 rules.

Rule 1.

Rule 2.

Rule 3.

Once your share has earned some dividends and you re-invest those dividends back into your snowball, even if you have to sell at a loss, you will in time earn back those losses from the re-invested dividends. If you re-invest your dividends back into the share in your snowball, any loss will sit in your account forever.

AGNC vs NLY vs MFA — Mortgage REIT Comparison

Takeaway: AGNC and NLY are the two large‑cap agency mortgage REITs with similar risk profiles (pure agency MBS, high leverage, rate‑sensitive), while MFA is a smaller, credit‑focused hybrid REIT with materially lower leverage, deeper discounts to book, and the highest headline yield. AGNC/NLY = stability; MFA = value + credit risk.

Below is a clean, structured, side‑by‑side comparison using the latest 2026 data from the search results. (All figures sourced from the pages above: AGNC , NLY, MFA .)

📊 AGNC vs NLY vs MFA — Mortgage REIT Comparison

	AGNCAgency MBS	NLYAgency MBS	MFACredit-focused hybrid
Valuation
Price/Book	1.19	1.15	0.50
Market Cap	$12.9B	$17.4B	$0.89B
Leverage
Debt/Equity	7.17	7.38	6.57
Net Debt/Equity	5.64	7.35	6.49
Profitability
ROE	19.8%	19.6%	8.2%
ROA	2.02%	2.33%	1.17%
Net Margin	94%	91%	49%
Dividend
Dividend Yield	13.24%	12.95%	16.36%
Payout Ratio	76.5%	75.8%	143%
Risk Metrics
Beta	1.30	1.24	1.50
Price Volatility (52w)	+11.7%	+9.9%	-9.6%
Business Mix
Portfolio Type	Pure Agency	Pure Agency	Credit + Non‑QM + MSR
Book Value Trend	Stable	Stable	Volatile

Sources:

🧭 Interpretation — What the numbers actually mean

1. AGNC — High‑yield, high‑leverage agency specialist

• Pure agency MBS → no credit risk, but extreme rate sensitivity.
• ROE ~20% is strong for an agency REIT.
• Dividend yield ~13% with payout ratio ~76% → reasonably covered.
• Trades near book (1.19× PB), signalling investor confidence.
• Best fit: income + relative stability within the mortgage REIT universe.

2. NLY — The benchmark agency REIT

• Largest, most diversified funding base.
• ROE ~19.6% and ROA highest of the three.
• Dividend yield ~13% with similar payout ratio to AGNC.
• PB 1.15× → slightly cheaper than AGNC.
• Best fit: income + scale + liquidity.

3. MFA — Deep‑value credit REIT with highest yield

• PB = 0.50× → trades at a huge discount to book.
• Yield = 16.36%, but payout ratio = 143% → not fully covered.
• Credit‑heavy portfolio (non‑QM, whole loans, MSRs) → more credit risk, less rate sensitivity.
• ROE only 8.2% → materially lower profitability.
• Best fit: maximum yield + value, but with higher risk.

🧩 Which fits your strategy?

If your priority is maximum income

→ MFA

• Highest yield (16%+)
• Deep discount to book
• But dividend coverage is weak and credit risk is meaningful.

If your priority is income with stability

→ NLY

• Largest balance sheet
• Slightly lower volatility than AGNC
• Strong ROE and well‑covered dividend.

If your priority is high yield + strong dividend coverage

→ AGNC

• Yield ~13%
• Payout ratio ~76% (best coverage of the three)
• Very clean agency book.

🔍 Non‑obvious insight

MFA’s huge discount (0.50× book) is not simply market pessimism — it reflects the fact that credit REIT book values are harder to mark and more volatile. AGNC/NLY trade near book because agency MBS valuations are transparent and liquid. So MFA’s discount is structural, not just an opportunity.

AI generated so as always DYOR before investing your hard earned.

The SNOWBALL is going to build a position in AGNC. If/when interest rates rise the price may fall and the yield rises, which would be a positive for the SNOWBALL.

Thursday 3 September

abrdn European Logistics Income PLC ex-dividend date
Foresight Environmental Infrastructure Ltd ex-dividend date
Globalworth Real Estate Investments Ltd ex-dividend date
Hammerson PLC ex-dividend date
MIGO Opportunities Trust PLC ex-dividend date
Utilico Emerging Markets Trust PLC ex-dividend date

Everyone bone in your body would be telling you not to trade but having done your research you have been waiting for Mr. Market to give you a life changing opportunity.

Not only have you achieved the holy grail of investing, the chart includes income but not re-invested back into the Trust but into your snowball, where you would be earning more dividends to buy more shares that pay dividends.

The next time you read timing doesn’t matter but only timein, you can have a quiet smile to yourself.

LWDB

MRCH

CTY

High Yielder

If you bought NCYF at its 2020 low, you would receive the yield as long as NCYF didn’t cut their dividend and hopefully it will gently increase.

Without good ole hindsight you can only buy at the bottom by luck but you might have bought the yield when it hit 15%.

LWDB 6.5%, MRCH 8%, CTY 6.5%, with the intention of never selling.

If you set a too higher target the share may never reach the target and you will miss out on one of the markets greatest opportunities.

Stock market news would have been dire but you are not buying the price as it would most probably continue to fall but you are buying the yield.

Advice for collectives only, as you know, one day, the price will move higher but you earn dividends as you wait.

Current cash to re-invest £897. There are no dividends to be earned until the end of the month, so I may book some profit to re-invest the cash.

The UK market doesn’t open until tomorrow but since it’s been closed the SNOWBALL has earned £100 in future dividends.

What’s the right balance of growth and income shares for a SIPP?

Story by Christopher Ruane

Key takeaways

• Investment Strategy: Consider a mix of growth and income shares based on your retirement timeline, objectives, and risk tolerance. Growth shares can benefit from long-term business development, while income shares provide steady dividends.
• Income Quality: Focus on the source and sustainability of dividends. High yields today may not last if the underlying business is weak. Look for companies with proven cash flow and growth prospects.
• Personal Goals: Define whether your SIPP aims for capital gains or regular income, and adjust your portfolio accordingly. Understanding your financial needs in retirement is key to choosing the right balance.

Pensions, for many of us, seem a long way off until they don’t. So a lot of investors pay too little attention to their Self-Invested Personal Pension (SIPP) for a long time before later scrambling to try and bulk it up as retirement draws closer.

This can raise the question of how to strike the right balance between growth and income shares for a SIPP.

This can raise the question of how to strike the right balance between growth and income shares for a SIPP.

Why growth can make sense in a SIPP
Each investor is different, of course, so there is no one correct answer. Some investors may even feel there is no need to balance, for example plumping for putting their whole SIPP into income shares in the hope of steady passive income streams.

This is understandable. Retirement costs money and pensions may be the only source of income at that point.

But I think the long-term nature of investing for retirement in a SIPP can provide the sort of timeline in which some growth shares are able to shine, as their businesses prove themselves and then develop.

Understand your objectives and risk tolerance
Part of this process will also depend on what someone is looking for from their SIPP, in terms of investment objectives.

Some people will hope dividends from the SIPP can form a significant part of their income in retirement. Others will be looking for the prospect of capital gain and may place a lower value on dividends.

Getting clear about your objectives and your risk tolerance (how much risk is willing to be taken in search of the targeted level of reward) is always an important part of any investing. This is true when it comes to deciding how to invest the money in a SIPP too.
Thinking about income and the source of income
One of the things I think is important when it comes to any income shares is trying to dig into the source of income. Where is it coming from? How likely is it to last?

Some investment trusts or companies may offer a high yield today, but in a way that seems ultimately unlikely to be sustainable over the long term. Maybe the business is in decline, or the trust’s spare cash is being eaten up.

Story by Zaven Boyrazian, CFA

Few investors come close to matching the exceptional track record of billionaire Warren Buffett. The ‘Oracle of Omaha’ has steered his investment firm to generate close to a 20% average annualised return since the 1960s. So it’s no surprise that when Buffett gives advice, investors listen… carefully.

And with the cost of living continuing to rise, his previous tips about the need to earn passive income are now more relevant than ever. After all, “If you don’t find a way to make money while you sleep, you will work until you die”, he famously said.

With that in mind, here’s how any investor can immediately start earning a passive income overnight.

The power of dividends

While many investment portfolios tend to be geared towards growth, it’s easy to overlook mature, boring dividend-paying stocks. After all, why would you invest in a dull self-storage enterprise when there are bleeding-edge biotechs curing cancer?

However, despite the lack of excitement and attention, income stocks nonetheless drive the bulk of shareholder returns over the long run. And that’s especially true for UK shares, which offer some of the most generous dividends in the world.

So how do investors tap into all this passive income potential? It’s simple. All they need to do is buy shares in a dividend-paying company, and wait for the money to come rolling in (usually once every quarter).

But is it really that simple?

Risk versus reward

The most lucrative dividend stocks over the long run aren’t necessarily the ones with the highest yields today. Instead, it’s the businesses that generate exorbitant volumes of consistent free cash flow that not only fund shareholder payouts but also enable them to grow over time.

That’s a lesson Buffett has learned first hand with his investment in Coca-Cola (NYSE:KO). The soft drinks giant has used its consistent and steady cash flows to increase dividends every year for 63 years in a row. And consequently, Buffett’s now earning more than a 60% yield on his original investment in the late 1980s.

Does that make Coca-Cola a no-brainer today?

Sadly, past performance doesn’t guarantee future results. And if investors blindly buy previously successful income stocks without investigating the underlying risks or potential rewards, their passive income could quickly disappoint.

How to earn a second income from UK property without buying a house!

Looking for ways to create a second income via UK property without going into debt? Investing in a real estate investment trust could be the key.

Posted by Zaven Boyrazian, CFA

LMP

You’re reading a free article with opinions that may differ from The Twelfth Magpie’s Premium Investing Services.

Property investments have long since been a terrific way to generate a second income stream. Buy-to-let strategies have yielded fantastic results over the years. But more recently, tax changes, rising property prices, and higher interest rates have made the barriers to entry significantly higher for the everyday investor.

Fortunately, there’s a clever alternative that not only allows the average Joe or Joanne to tap into the real estate sector for income, but also do it entirely passively.

A hands-free real estate income stream

One of the easiest ways to start investing in this space is by using a real estate investment trust, or REIT. This special vehicle behaves and trades like a regular stock, allowing money to be added or withdrawn almost instantly – a massive liquidity advantage.

The underlying business is essentially a portfolio of properties actively managed by a team of experts and designed to generate regular cash flow, typically through rent, which is then returned to shareholders as a dividend.

What’s more, since REITs are traded like regular stocks, they can be put inside a Stocks and Shares ISA, removing taxes from the equation – another terrific advantage over classic buy-to-let.

Even with as little as £500, there are plenty of REITs on the London Stock Exchange to choose from, each focusing on its own types of property. It’s not just residential housing but also hospitals, carparks, wind farms, logistical hubs and many more.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

A REIT to consider?

Of all the stock market real estate opportunities available right now, LondonMetric Property (LSE:LMP) is among my personal favourites. The group specialises in triple-net, long-term leasing real estate with a particular knack for urban logistics.

With tenancy agreements typically spanning over a decade, the group has had little trouble maintaining exceptionally high occupancy levels even as UK economic conditions suffered. And following its merger with LXi REIT in 2024, along with further bolt-on acquisitions in 2025, the company’s been leveraging its impressive cash flows to absorb its weaker rivals and expand market share.

This has ultimately culminated in a decade of continuous dividend growth as well as its introduction into the FTSE 100 earlier this year. And with a 6.8% dividend yield still on offer, the second income investors could generate from buying shares remains substantial.Zoom1M3M6MYTD1Y5Y10YALL

Every investment carries risk

As much as I admire the operational excellence of this business, I’m not blind to the risks it faces. While its long-term rental contracts have provided the cash flow needed to keep its leverage under control, higher interest rates have nonetheless negatively impacted the valuation of its property portfolio. And with a number of key leases coming up for renewal, lease pricing may be renegotiated downward.

Nevertheless, management’s solid track record makes me cautiously optimistic. And with a valuation driven by short-term weakness in property valuations rather than rental cash flows, I feel these shares are a terrific opportunity for investors to potentially unlock a substantial long-term second income. Of course, there are also plenty of other REITs to explore as well.

ADX vs ARCC: two very different income vehicles — one an equity closed‑end fund (ADX), the other a giant private‑credit BDC (ARCC). The short takeaway: ADX = equity exposure + deep discount + 7.3% yield, while ARCC = private credit + 9.6% yield + steadier earnings. They serve different roles in a portfolio.

Below is a structured, side‑by‑side comparison using the latest sourced financial data.

📊 ADX vs ARCC — Key Financial Comparison

	ADX7.33% yield	ARCC9.66% yield
Valuation
P/E Ratio	5.34	14.88
Market Cap	$3.24B	$14.35B
Price vs 52W High	−1.02%	−11.4%
Income
Dividend Yield	7.33%	9.66%
Dividend Per Share	$1.91	$1.92
Dividend Type	Equity distributions	Ordinary income (BDC)
Portfolio
Asset Type	US equities (internally managed CEF)	Private credit loans to mid‑market firms
Top Holdings	NVDA, AAPL, GOOGL, MSFT	~$29B loan book across 500+ companies
Beta	0.92	0.62
Financial Strength
Debt/Equity	—	1.14
Net Asset Value	—	$19.35/share
ROE	—	6.88%
Performance
YTD Return	11.32%	−1.38%
1‑Year Return	18.65%	−10.34%
5‑Year Return	25.29%	−0.84%

Sources: ADX price, yield, P/E, holdings, performance ARCC price, yield, P/E, NAV, debt/equity, returns MSN Money+1MSN Money. Ares Capital Corpfinance.yahoo.com. Ares Capital Corporation (ARCC) Stock Price, News, Quote & History – Yahoo Finance

🧠 What the comparison actually means

ADX — Adams Diversified Equity Fund

Identity: A 1929‑founded, internally managed US equity closed‑end fund. What stands out:

• Trades at a deep discount to NAV (typical for ADX historically).
• Very low P/E of 5.3, meaning the equity portfolio is priced cheaply.
• 7.3% yield paid through quarterly distributions.
• Heavy exposure to mega‑cap tech (NVDA, AAPL, GOOGL, MSFT).
• No leverage risk like a BDC; instead, equity market risk.

Implication: ADX behaves like a discounted S&P‑tilted equity basket with a high distribution rate. Strong when markets rise; volatile when they fall.

ARCC — Ares Capital Corporation

Identity: The largest publicly traded BDC, lending to mid‑market US companies. What stands out:

• 9.6% yield, one of the highest sustainable yields in the BDC space.
• Earnings are interest‑rate sensitive; higher rates → higher income.
• NAV slipped from $19.94 → $19.35 recently due to unrealized losses.
• Debt/Equity 1.14 — normal for BDCs but still leverage‑heavy.
• 1‑year share price −10%, reflecting credit‑cycle concerns.

Implication: ARCC is a credit‑income machine. It performs best when defaults stay low and rates stay high. It is less volatile than equities but carries credit‑risk and leverage‑risk.

🧩 Which fits which role?

ADX is better for:

• Equity‑income exposure
• Benefiting from a discount to NAV
• Long‑term capital appreciation + distributions
• Tech‑heavy growth tilt

ARCC is better for:

• High, steady cash yield
• Lower volatility than equities
• Private‑credit exposure
• Income‑focused portfolios

⚠️ Risk Notes (important)

• ADX risk: equity drawdowns, tech concentration, discount widening.
• ARCC risk: credit cycle deterioration, rising non‑accruals (currently 2.4% per Yahoo Scout) , NAV erosion, leverage.