#8 – Annaly Capital Management (NYSE:NLY)
Current Yield: 10.8%
Annaly is what’s known as a mortgage REIT. These companies buy real estate mortgages and fund those purchases with short-term notes. They profit from the spread.
Annaly’s book value per share is $8.65, and the stock trades at a 6.5% discount to book value. With a 10.8% yield, there is a potential 17% return in the next 12 months if the company returns to book value.
Mortgage REITs normally benefit from a stable interest rate environment. Annaly has the highest dividend yield of the group and has a great track record.