The one and only Annaly Capital Management, Inc (NYSE:NLY)
According to Dividend Channel, Annaly Capital Management Inc (NYSE:NLY) has been ranked as a Top-10 Real Estate Investment Trust. This information was published in its latest, “DividendRank” report. The report stated that amongst all REITs, the valuation metrics as well as the profitability metrics of Annaly shares were attractive and strong. For example, its recent, $13.75 share price represented a 0.9, price-to-book ratio and a 13.10% annual dividend yield.
In comparison, the average stock in the Dividend Channel coverage-universe yields 3.6% and trades at a 2.0 price-to-book ratio. The report also noted the company’s strong quarterly dividend history. In addition to this, NLY’s long-term, multi-year growth-rates in key fundamental data-points have been very favorable.
What is a REIT?
Having some investment in real estate that generates income can prove to be an excellent way to boost your net worth. However, for most people, any real estate investment especially in commercial real- estate is nothing more than a far-fetched fantasy. But consider a scenario in which it was possible for you bunch your resources with few other small-investors and invest in some large-scale commercial real estate as one group? That’s exactly what REITs allow you to do.
REIT or Real Estate Investment Trust is sometimes referred to as “real estate stock.” These are essentially companies that own as well as manage a portfolio of real-estate mortgages and properties. Buying shares in any publicly traded REIT is open to anyone. With them, you can enjoy the benefits of owning real estate without worrying about the expenses that landlords have to worry about.
Investing in certain types of REITs also provides some distinct advantages such as diversity and liquidity. Unlike any actual real-estate property, it is possible to sell REIT shares very quickly and easily. And since you are investing in an entire portfolio of properties instead of just a single building, the financial risk that you face is much lower. In order to qualify as a REIT, at least 90% of its taxable income has to be distributed to its shareholders, annually. Most REITs end up paying-out 1005 of the taxable income. Tax losses cannot be passed on to its investors. All in all, investing in a REIT such as Annaly Capital Management Inc (NYSE:NLY) could prove to be a wise investment.