More from this Author
- May 1, 2013
- April 25, 2013
- April 11, 2013
- April 8, 2013
When I recommended this stock nearly two years ago it was paying a 14.4% yield.
In most cases, yields this high aren’t safe.
But this company is different.
For many businesses, an operation like this comes with risk. But like I said, this company is different: It ONLY invests in securities that are backed by the U.S. government. And, thanks to a unique law, the company is required to pay out 90% of any profit it makes to its shareholders in the form of dividends.
[More from Andy Obermueller: " Warren Buffett’s Favorite Auto Stock"]
In other words, at the time I recommended this stock, we were looking at a rare opportunity to lock in a ridiculously high yield with relatively little risk.
Since then, investors have piled into the stock like crazy and shares have soared. The company I’m talking about is Annaly Capital Management (NYSE: NLY) – and if you got in when I recommended, you’d be sitting on a 90% profit today.
Take a look…
Remarkably, about half of these gains have come from dividends.
Here’s how it breaks down…
Add up your income from both 2009 and 2010 and you’d be looking at a 38.4% return from dividends alone in less than two years.
Now here’s where it gets interesting…
Even though Annaly’s shares are trading about 33% higher than when I first recommended them, based on the company’s 12-month trailing dividends, you can lock in a 14.5% yield if you buy this stock today.
Keep in mind, though, that like all dividend-paying stocks, there are no guarantees. The company could cut its dividend at any time without any prior notice.
However, if history is any guide, Annaly should continue delivering strong returns…
Since going public in 1997, it’s returned more than 900% and hasn’t missed a single dividend payment. On top of this, it still only invests in securities backed by the U.S. government, and it’s still required to pay out 90% of its profits to its shareholders — just like it was when I first recommended it.
Action to Take –> With its huge yield and relatively low risk, an investment in Annaly today could be the easiest way to make a 14.5% return on your money this year.
Rock Star Wealth Without Singing A Note?
The rock star Bono, lead singer for mega group U2, recently pocketed an estimated $10 million thanks to a little-known underground stock market. That's more money than his band generates by playing a sold-out rock show in front of 90,000 people. Click here to see how you can access this market too.