Is Annaly Capital Stock a Millionaire-Maker?
Investors should exercise caution when considering Annaly Capital (NYSE: NLY) and its huge 12.5% yield. This is because too much of a good thing can sometimes turn out to be a bad thing. Here's how Annaly Capital could help you build a million-dollar portfolio -- and why a huge dividend yield doesn't make this mortgage real estate investment trust (REIT) a reliable dividend stock.
Annaly Capital raised its dividend at the start of 2025. There's a saying among dividend investors that the safest dividend is the one that has just been raised. That makes Annaly's shockingly large 12.5% dividend yield sound like a great opportunity for dividend lovers. Before you buy into this logic, however, it's important to understand just how large the dividend really is.
Image source: Getty Images.
Source Fool.com
