Annaly Capital Management offers a dividend yield 10 times higher than the S&P 500, as it is required to pay out 90% of its taxable income in dividends. The mortgage REIT’s income fluctuates with market conditions and interest rates, impacting dividend payments. Annaly reported $0.73 per share of earnings available for distribution in the third quarter, covering its $0.70 per share dividend payment. The REIT’s earnings fluctuate with interest rates and market conditions, affecting dividend payouts. Investors should consider these factors before buying shares for income.

Annaly Capital Management, a mortgage REIT, invests in various mortgage-backed securities and mortgage servicing rights to earn double-digit returns. The company’s legal requirement to pay out most of its taxable net income in dividends results in its high yield. Annaly hiked its dividend earlier this year, reflecting improved earnings. However, investors should be aware that dividend payments can vary based on the REIT’s earnings, influenced by interest rates and market conditions. Consider other investment options for potentially higher returns.

Read more at Nasdaq.: This Real Estate Stock Is Yielding 12% (Legally)