Mortgage REITs, like Annaly Capital Management and American Capital Agency, carry hefty dividend yields, but these stocks may not be the best fit in a retiree's portfolio.

In the following video, Motley Fool banking analyst David Hanson sits down with Fool contributor and Editor of the independent Intelligent REIT Investor newsletter Brad Thomas to discuss why he prefers REITs that own physical properties and have shown a long-term track record of increasing earnings, as opposed to the double-digit yielding mREITs. Brad specifically mentions Realty Income as good alternative in the REIT space.

David Hanson owns shares of Annaly Capital Management. Robert Thomas owns shares of Realty Income. 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.