Forget Annaly Capital: Buy This Magnificent REIT Stock Instead
Dividend investors are attracted to high-yield stocks for good reason, as higher yields maximize the income that can be generated. But a high yield can also be a sign of a risky dividend stock, attracting dividend lovers like moths to a flame that may ultimately burn them. This is the situation with Annaly Capital (NYSE: NLY) and its 13.6% dividend yield. Investors will probably be better off buying lower-yielding Realty Income (NYSE: O) instead.
At their core, both Annaly and Realty Income are real estate investment trusts (REITs). This is a corporate structure designed to pass income on to investors via investment in institutional property markets. But these two REITs aren't doing the same thing at all when you look at their actual business models.
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Source Fool.com
