It’s time to vote with your money and avoid the Greek nonsense by investing in a high yield income stock that is moving up.
In a week when Greece decided it wanted some direct democracy – the Prime Minister called for referendum on the bailout and debt haircut, to take place in January. Of course he backed down after pressure from the ECB and everyone is waiting for the next shoe to drop.
But it is time for average investors to vote with their money and avoid the nonsense in the markets created by the Greeks – and invest in a generously paying income stock that is moving up.
13 profitable trades in a row in just the last 60 days
In the middle of one of the worst stretches of financial madness since 2008, our members just completed 13 income-producing trades in a row…That’s over $1,700 in INSTANT INCOME our members made by following Michael Shulman’s brilliant trade recommendations – all while most investors were LOSING money. Click Here To Get In On Next Week’s Big Trades
The stock is Annaly Capital Mortgage (NLY), a mortgage REIT, in my mind the only one worth owning.
Annaly uses borrowed money to buy federally insured mortgages and makes money on the spread – the difference between what it pays for money and what it takes in. The stock took a hit when the Fed announced what is now called Operation Twist, creating a great buying opportunity, and has climbed back, even rising this week. Why?
Everyone now knows what its short term costs will be AND what it will receive from mortgages – the Fed has locked in, sort of, long and short term rates and the only movement can be on the longer term rates in a way favorable to Annaly.
The stock pays a 14.10% dividend – that is not a misprint. As a REIT, the company must pay out 90% of its profits to avoid corporate income taxes and it does so.
I even use a put selling and call writing strategy that has the potential to boost that 14% to between 18%-22% for people owning the stock.
The stock always sells-off ex-dividend – after the sell-off you sell a put. A few days before it goes ex-dividend, you sell a call. By that time the put will have declined in value and you buy it back. After the stock goes ex-dividend, the stock moves down and you buy back the call.
It sounds too easy – just check out the movements in the stock and watch for a while if you do not believe me. The company goes ex-dividend the last week of December.
Even if you are afraid of a crash, check out the chart below – NLY bounced back quickly, unlike many other financials, paying dividends all along the way. This is not a short term position – it will move down with a market meltdown – but a long term position that is the ultimate high yield stock for someone needing income or wants cash to average down.