Is Annaly Capital Stock a Millionaire-Maker?

Core Viewpoint - Annaly Capital offers a high dividend yield of 12.5%, which may attract investors, but its volatility and lack of reliability as a dividend stock warrant caution [1][6][10] Dividend Yield Analysis - Annaly Capital's yield is significantly higher than the S&P 500's 1.1%, the average financial stock's 1.3%, and the average REIT's 3.9%, being over three times larger than the average REIT and nearly ten times larger than the average finance stock [3][5] - The company's dividend has been highly volatile over time, with a trend of decreasing dividends prior to a recent increase, indicating potential risks associated with its high yield [3][6][10] Investment Strategy - While Annaly Capital may not be suitable for traditional dividend investors seeking reliability, it can still be beneficial for total return-focused investors when used as part of a diversified portfolio [9][11] - The REIT has historically provided better total returns than the S&P 500, suggesting that it can help investors build significant wealth if approached correctly [9][11] Company Characteristics - Annaly Capital operates in a unique niche within the mortgage REIT sector, requiring investors to understand its business model and the mortgage securities it purchases [10] - The company has a market capitalization of $15 billion, with a current stock price of $22.60, and has shown a trading volume of 6.1 million shares [5]