Forget Annaly Capital; These Unstoppable Stocks Are Better Buys

The big selling point for buying shares of Annaly Capital (NYSE: NLY) is the mortgage real estate investment trust's (mREIT) outsized 13.9% dividend yield. Don't buy into that; history suggests that rate isn't sustainable.

Investors interested in good yields on REITs will be better off with Federal Realty (NYSE: FRT), Realty Income (NYSE: O), or Essex Property Trust (NYSE: ESS), all of which have increased their dividends annually for decades. Here's why these three unstoppable stocks are better buys.

Pardon the punny Lord of the Rings reference above, but it really does describe the situation. You only need one chart to see why most investors will be better off avoiding Annaly Capital and its giant dividend yield. The chart below shows that despite the yield being fairly lofty on an ongoing basis (the orange line), the dividend and stock price (purple and blue) have both been heading lower since around 2010. That's a terrible chart for any investor trying to find a reliable dividend-paying stock.

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Source Fool.com