fool.com·Apr 12, 2026
Annaly Capital (NYSE: NLY) has outperformed the S&P 500 since its IPO, largely due to its high 12.8% dividend yield; however, as a mortgage REIT, its focus is on achieving high total returns rather than providing a consistent stream of dividends typical of traditional property REITs.
Annaly Capital's 12.8% dividend yield may appear attractive, but it's crucial to understand that as a mortgage REIT, its focus is on high total return rather than providing a stable, growing dividend stream. This is important for your portfolio strategy as the stock may not offer the consistent income that traditional property REITs provide, and its performance can be more volatile, akin to a mutual fund.