With their eye-popping dividend yields, mortgage real estate investment trusts (REITs) are attracting interest from income investors as many have double-digit dividend yields. The mortgage REIT sector has been battered over the past year as interest rates rose quickly and caused many to report big declines in book value per share and cut their dividends. Annaly Capital (NYSE: NLY) is one of the top mortgage REITs out there. Is the worst over for this high-yield stock and is it a buy?
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Annaly Capital is a mortgage REIT that follows several strategies. Annaly's main strategies include agency, residential credit, and mortgage servicing. The agency strategy invests in mortgage-backed securities (MBS), which are guaranteed by the U.S. government. This is a classic mortgage REIT strategy.
Source Fool.com