Earn 13% Yield Buying This Best of Breed Business

This business is simple and may be one of the best business models that ever existed thanks to U.S. government guarantees. Today you can earn 13% dividend yield buying Annaly Capital Management (NLY). The company has 170 employees managing more than $130 billion in assets.

The company has a large and strong balance sheet allowing it to borrow short term loans very cheaply and invest the funds in longer term mortgages at higher rates. To lower its risk Annaly invests mostly in Agency mortgage-backed securities ("MBSs") which are backed by Fannie Mae, Freddie Mac or Ginnie Mae. These quasi-government agencies are known as government-sponsored enterprises ("GSEs"). Basically the U.S. government is guaranteeing the bond investments Annaly owns and will cover the loss if someone defaults on their mortgage.

The market is currently pessimistic on Annaly stock which is how we can buy cheap shares today and collect such a large dividend.

The business is extremely solid. Check it out today.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.