Better Buy: Annaly Capital or W.P. Carey?
Annaly Capital Management (NYSE: NLY) and W.P. Carey (NYSE: WPC) are both structured as real estate investment trusts (REITs). And yet, they are very different companies. If you are a dividend investor, knowing some key facts about these two REITs can help you decide not only which one is better for you but also why you should pay attention to more than just yield.
Dividend investors are generally drawn like moths to a flame to high yields. It's one of those emotionally driven decisions you need to understand (and prepare to counteract), or it will likely get the better of you. And when it comes to mortgage REIT Annaly Capital's 16% dividend yield, that flame is huge. By comparison, W.P. Carey's 5.4% yield seems almost tiny, even though it is well above the REIT average of 3.5%, using Vanguard Real Estate Index ETF as a proxy.
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Source Fool.com
