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Divdend Stocks: 3 Safe Bets and 3 Adventurous Plays

These picks range from utilities to those profiting off the high seas

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Adventurous: Annaly Capital Management

AnnalyDividend Yield: 11.4%

Mortgage real estate investment trusts posted eye-popping returns last year as they cashed in on ultra-low mortgage rates and passed those wide interest rate spreads onto investors in the form of double-digit dividends.

As one of the leaders of the pack, Annaly Capital Management (NYSE:NLY) boasts a whopping 11.5% yield, and it’s trading at just 11 times next year’s earnings, which isn’t too out of line with the rest of the sector.

Nevertheless, potential investors should consider a couple of factors before they ante up. Mortgage rate spreads likely will be tighter this year than they were last year. Regulators and lawmakers recently have cast a critical eye in the direction of mREITs — a sign that NLY and its peers might face curbs on borrowing or see less favorable tax treatment. These factors could potentially bring that lofty yield down to earth.

Article printed from InvestorPlace Media,

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