Annaly Capital Management (NYSE: NLY ) is one of the most popular mortgage REITs in the country. It pays a double-digit dividend yield and invests only in mortgage-backed securities that are issued or insured by Fannie Mae or Freddie Mac. The net result is that, aside from interest rate risk, investors in Annaly can have their cake and eat it, too, receiving large quarterly checks in the mail without having to worry about credit risk. What's not to like?
In the video below, Motley Fool contributor John Maxfield discusses why, despite these things, investors should be wary of this stock.
There's no question Annaly Capital's dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!