Stability Plus An 11.5% Yield

This stock pays an 11.5% annual dividend that looks stable at this time. The 10-year US Treasury Note yield fell -50 bps in Q1 2016. Bonds, including RMBS, usually go up in such a scenario. Core Logic reported that US homes prices saw a +6.8% gain year-over-year from February 2015 through February 2016. This indicates stability for this company. The Fed in its last meeting in March 2016 said it expected 2 rate hikes in FY2016 (down from 4). Many people are saying one or none.

Annaly Capital Management (NYSE:NLY) is the largest mortgage REIT on the NYSE. Its primary business objective is to generate net income for distribution to shareholders through prudent selection and management of investments. NLY is externally managed by Annaly Management Company LLC. It is considered by many to be one of the "blue chip" mortgage REITs. NLY has far outperformed many of the indices, such as the S&P 500, over the years (mostly through its dividend payouts). Its current dividend is 11.5%. The chart below shows the outperformance of Annaly Capital Management compared to a variety of other possible investments from December 31, 2014, through January 29, 2016.

Source: Seeking Alpha

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