Annaly Capital Management, Inc. (NYSE:NLY)

While the capital appreciation will not beat the S&P 500, its dividends surely will.

Chuck Akre "Mr. Compounder" pick: http://www.gurufocus.com/StockBuy.php?GuruName=Chuck+Akre http://www.gurufocus.com/stock/NLY Sell at $24 Graham Number

one of the largest finance companies. pays a high dividend 10%

and the last shall be first.

Consistent double digit mREIT. Everyone is worried about an increase in rates and how it will reduce NLY's margin, bring down the dividend, and the share price has reflected this. Nevermind doing the homework on the history of the company shows that a few years ago when rates were higher, margin was smaller.... and dividend yield was still in double digits. I'll take the reinvested dividends, which will offset the losses to share price and turn one dollar in to two dollars every 7 years or so.

I'm in this one for the dividend and potential pullback in U.S. stocks

Rate hikes and better margins

div=12.2

Real estate performance

Stocks tend to go in cycles. I'm hoping we are at the bottom of the cycle and it will start curving up.

Another great dividend. A little bit risky on the consistency of dividend payouts, but solid. Interest rate yield is decreasing due to Fed action, but it has weathered the worst of the storm. Recent CEO change due to death of former boss after struggle with cancer.

will sustain dividend; price is very attractive now

NLY may buy up a few other REITs but there's no way to sustain these dividends once the economy rolls over into a boom and the interest rates follow it higher. I want to get some more of this, but I also will expect to hold it a long time to recover my investment with reducing dividends.

Most likely it won't.

QE is putting the housing market back on track. Home prices have gone up and defaults are falling. Increased real estate prices have a positive effect on the book value of NLY's holdings.

Additionally, QE won't last forever. Once the program ends, long term rates will rise, and mREITs will get their spread back.

In the short term QE hurts the company. The re-election of Obama has the market going wild. I think this presents a good buying opportunity.

Dividends are good

Stock is down, even after a big buy back authorization. With CAPS, if you hold big dividend payers you are putting the odds in your favor as your starting price goes lower and lower over time. Outperform.

Low-rate environment...blah, blah, blah...outperform.

Dividend is safer than the market presently fears. At a 13% yield, it can ebb a bit and still pay off very nicely.