This Ultra-High-Yield Stock Is Cutting Its Dividend Again. Here's A Better Buy.
Annaly Capital Management (NYSE: NLY) has an atrocious dividend track record. The mortgage REIT the week officially announced it was reducing its payout again -- as management telegraphed that it would last month -- continuing a steady decline that has been going on for the past decade.
While Annaly still offers a big-time yield, its payout could keep falling. Because of that, there are better options for those seeking to generate passive income. A more promising opportunity for those desiring an outsized yield is its fellow mortgage REIT, Arbor Realty Trust (NYSE: ABR).
Annaly has reset its quarterly dividend payment to $0.65 per share. That's a 26.1% reduction from the prior level of $0.88 per share. While that payout still gives the company an attractive dividend yield of around 12.5% at the recent stock price, it continued the steady downward trend in the dividend.
Source Fool.com