Annaly Capital Management is a mortgage REIT offering a 13% dividend yield, making it attractive for dividend screens. However, the stock’s volatility and downward trend in dividend income may not suit income-focused investors. The complex nature of the REIT sector and shrinking portfolio due to principal repayments pose risks.

Annaly aims for total return, not just income, with a return profile similar to the S&P 500 index. Reinvesting dividends is key to benefiting fully. Adding Annaly to an asset allocation portfolio can provide diversification and better overall returns. However, spending the REIT’s income may limit benefits.

While Annaly may not be a standalone millionaire-maker stock, it can play a role in building a seven-figure nest egg within a diversified portfolio. The REIT’s complexity and focus on total return make it unsuitable for most income-focused investors despite its high dividend yield. Consider long-term investment strategies.

The Motley Fool Stock Advisor did not recommend Annaly Capital Management in their top 10 stock picks, which have historically provided significant returns. Join Stock Advisor for access to their latest recommendations and potentially lucrative investment opportunities. Past recommendations like Netflix and Nvidia have yielded substantial returns compared to the S&P 500.

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Read more at Yahoo Finance: Is Annaly Capital Management Stock a Millionaire Maker?