Dividend stocks are everywhere, but many just downright stink. In some cases, the business model is in serious jeopardy, or the dividend itself isn't sustainable. In others, the dividend is so low it's not even worth the paper your dividend check is printed on. A solid dividend strikes the right balance of growth, value, and sustainability.
This week, we're going to take a look into the precarious world of mortgage REITs, and I'll show you why Annaly Capital Management (NYS: NLY) is an income-producing stock you can trust.
With so many possible problems then, why on Earth should you consider Annaly Capital Management? First, it's made serious strides to reduce its leverage, unlike many of its peers. Because of that leverage reduction shareholders will net a slightly lower yield, but its free cash flow is enough to cover that yield! That hasn't stopped the share issuances, unfortunately, but it's good to know that Annaly's free cash flow alone could cover its current yield of 13.2%.
Source: Daily Finance
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