Income-focused investors sometimes flock to real estate stocks for their typically hefty yields. With that in mind, you may be tempted to load up on Annaly Capital Management (NYSE: NLY) stock to take advantage of the company's sizable quarterly distributions.

It's important to know exactly how big those payouts will be, no doubt. At the same time, investors should consider their position sizing, as Annaly Capital Management stock may fluctuate and the company's quarterly cash payouts might not be quite as dazzling in future.

First and foremost, investors should think about owning a piece of a company they really like and understand, rather than just chasing high dividend yields. After all, the distributions won't be much of a consolation prize if the stock is highly volatile.

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Source Fool.com