3 Reasons It's Finally Time to Buy Annaly Capital Management, Inc.

Mortgage REITs faced a tough environment in 2013, and it may be in for more of the same in 2014. But there are still three great reasons to buy this industry giant.

Apr 10, 2014 at 8:00AM

You don't care about the company's story. The great innovative mind behind the business, or the fantastic opportunity for growth. No, you care about what matters. How much cash can this company put into my pockets?

For all my cash lovers out there, mortgage real estate investment trusts, or mREITs, and their 10%-plus dividend yields have fantastic appeal. 

Post financial collapse, mREITs like Annaly Capital Management (NYSE:NLY) dominated the stock market and destroyed the S&P 500 as short-term rates (and funding costs) came tumbling down. For a moment, we allowed ourselves to believe that perhaps this industry came without risks. 2013 shook us awake from that terrible notion as Federal Reserve's tapering program created wide-spread uncertainty. Which, in turn, sparked severe volatility in the bond market, and forced mREIT managers to play defense to avoid severe losses to its book value.

While many investors are still fearful, I believe now is the perfect time to strike on one of the industry's largest and most battle tested players, Annaly Capital Management. Listed in the slideshow below are the top three reasons now is a great time to buy.

Is This a Better Dividend Option Than mREITs? 
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Dave Koppenheffer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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