Is Annaly Capital Management Stock a Millionaire Maker?

The S 500 index is currently offering a slim little 1.2% yield. The average real estate investment trust (REIT) is yielding around 3.9%. Annaly Capital Management (NYSE: NLY), a mortgage REIT, is offering an over 13% dividend yield today! While you shouldn't buy Annaly Capital if you are looking for a reliable income stream, it can still be a key part of a millionaire-maker portfolio. Here's what you need to know.

Annaly Capital will probably pop up on most dividend screens given the huge yield it offers. But yield alone is not a good reason to buy this stock, particularly if you need the income your portfolio generates to pay for living expenses. A simple graph can illustrate the issue.

NLY data by YCharts.