Why Is Annaly Capital Management's Dividend So High?
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
