As I’ve explained in previous articles, income investors have two main priorities when it comes to investing: preserving investment capital and receiving steady income. The capital deployed into the stock is used to ensure that the money won’t disappear with a share price decrease. That’s why investors want to own shares in a company that can grow and that doesn’t have a lot of daily volatility. As for the income stream, the dividend would be observed to ensure it’s safe.
Today’s example of the above is Annaly Capital Management, Inc. (NYSE:NLY), which is currently yielding 9.85%, well above the 2.2% yield of the S&P 500. Annaly Capital Management owns real estate-related investments, including different types of mortgage-backed securities and hedged products, with both residential and commercial mortgages originated, acquired, financed, and managed by the company.
Source: Income Investors
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- Managing Risk With Dividend Stocks
- If Only I Had Known About These Dividend Stocks...
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