Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Why Is Annaly Capital Management's Dividend So High?

TheMotleyFool

0 0

Why Is Annaly Capital Management's Dividend So High?: https://g.foolcdn.com/editorial/images/712794/concerned-unhappy-person-staring-at-laptop.jpg

Annaly Capital Management (NYSE: NLY) takes the title of an ultra-high-dividend stock to a whole new level. The mortgage real estate investment trust, which invests in mortgages and mortgage-backed securities (MBSs), has a dividend yield of more than 16% -- about 11 times higher than the current yield on the S&P 500.

With a yield as high as this, investors may be wondering what's driving Annaly's double-digit yield and how risky an investment is the stock today. Let's take a closer look and see.

Mortgage REITs historically pay a much higher dividend yield than other dividend-paying stocks. That's because their business model carries more risk.

Source Fool.com

Like: 0

NLY

Share