Is 13%-Yielding Annaly Capital the Best Dividend Stock for You?
Dividend investors love high yields. I know -- I'm a Dividend investor, and I can't help but look at a stock with a double-digit yield. That's not a bad thing, but it is a tendency that requires me to take a very critical approach when it comes to actually buying stocks. Simply put, I have to remind myself that a high yield is often a sign of big risks.
Annaly Capital (NYSE: NLY) is a great example. Here's what you need to know before you buy this 13%-yielding real estate investment trust (REIT).
I generally love REITs. Most dividend-focused investors should probably own a few, given that they are specifically designed to pass income on to shareholders. But not all REITs are created equal, just like all companies aren't created equal.
Source Fool.com
