Could Buying Annaly Capital Stock Today Set You Up for Life?

Annaly Capital (NYSE: NLY) shows up prominently on yield-focused stock screens thanks to its huge 12.9% dividend yield. For reference, that's more than 10 times the roughly 1.2% yield on offer from the S&P 500 index (SNPINDEX: ^GSPC). However, take the time to get to know this real estate investment trust (REIT) before you jump into the ultra-high yield stock, thinking you're setting yourself up for a lifetime of reliable income.Annaly Capital is a mortgage REIT. This is a unique and fairly complex niche of the broader REIT sector. Most REITs own physical properties that they lease out to tenants. They basically do what you would do if you owned a rental property, making the traditional REIT business model fairly easy to understand. Mortgage REITs like Annaly don't buy physical property; they buy mortgages that have been pooled together into bond-like securities.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool