3 Things Investors Need to Know About Annaly Capital Management Stock

The big draw for most investors when they look at Annaly Capital Management (NYSE: NLY) is going to be the gigantic 12.9% dividend yield. Don't get blinded by the yield, you need to do a deep dive to really understand what this real estate investment trust (REIT) is doing, or you could end up sorry you bought it. Here are the three most important things you need to know about Annaly Capital.A traditional real estate investment trust buys a physical property and then leases it out. That's easy to understand because it's exactly the same thing you would do if you bought a rental property. Annaly doesn't do that; it buys mortgages that have been pooled together into bond-like securities. That's not good or bad, but mortgage REITs are a different animal from property-owning REITs.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool