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.

Dave Koppenheffer
Dave Koppenheffer
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.