Annaly Capital Management (NYSE: NLY) is a very alluring dividend stock. The mortgage real estate investment trust (REIT) currently has an eye-popping 14% yield. That's about 10 times higher than the S 500's 1.4% dividend yield.

However, income-focused investors should forget about the mortgage REIT. Instead, they should buy Realty Income (NYSE: O). While the retail-focused REIT has a lower-yielding monthly dividend of 6%, it has steadily increased its payout over the years (whereas Annaly has cut its payment several times). With Annaly's payout at risk of another reduction, it's not a good option for those seeking a sustainable income stream and higher total return potential.

Annaly hasn't been the most reliable dividend stock over the years. The REIT focused on investing in the residential mortgage market has cut its payout several times, including by about 26% last year:

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Source Fool.com