Please ensure Javascript is enabled for purposes of website accessibility

Does Annaly Capital Make a Good Income Stock?

By David Hanson and Matt Koppenheffer – Feb 10, 2014 at 1:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Mortgage REITs such as Annaly Capital Management often have extremely eye-catching dividend yields. But do these truly make good reliable income stocks, or is there more to the story here?

In this segment of The Motley Fool's all-financials show Where the Money Is, Fool financial analysts Matt Koppenheffer and David Hanson take a question from a Fool reader on Facebook who writes, "What is your opinion of Annaly Capital Management (NLY 2.36%) for an income stock?"

The guys discuss how to view the idea of an income stock at different points in an investor's lifetime and highlight one important distinction for investors regarding the difference between a stable dividend yield percentage versus a reliably stable dividend -- the first does not guarantee the second.

David Hanson owns shares of Annaly Capital Management. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Annaly Capital Management Stock Quote
Annaly Capital Management
NLY
$21.65 (2.36%) $0.50

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.