This High-Yield Trust Pays Out 10.4%

Today’s chart highlights one of the safest, highest-yielding investments around: high-yield trusts. High-yield trusts get little coverage in the press. Despite the meager coverage, though, some of these names yield as much as 10%, 12%, even 15%. Overall, high-yield trusts offer real income potential. Unlike normal dividend stocks, their payouts can be volatile.

Take, for instance, Annaly Capital Management, Inc. (NYSE:NLY). This partnership owns a vast collection of real estate mortgages. And while I doubt you’ve heard of it, I love the name for a couple of reasons. First, it cranks out profits. Annaly works in the same way as a regular bank: it borrows money at a low interest rate and lends out at a higher one. For collateral, most of these loans are backed up by high-quality properties.

Source: Income Investor

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