NLY - 2 High-Yield Stocks to Buy Hand Over Fist and 1 to Avoid
2024-06-27 05:35:00 ET
If you are trying to build a passive income portfolio you'll probably be looking at dividend yield when making stock selections. Don't get so focused on yield though that you miss the importance of buying companies that are reliable dividend payers.
For example, T. Rowe Price (NASDAQ: TROW) and Agree Realty (NYSE: ADC) look likely to keep paying attractive dividends for years. But ultra-high-yield Annaly Capital Management (NYSE: NLY) has a terrible dividend track record. Here's why the first two are worth buying and the third should be avoided.
There's no way around it, T. Rowe Price has a volatile business. That's because it charges fees to its customers for managing their investments. The fees it earns are based on assets under management , or AUM. AUM changes in two ways, first via customer inflows and outflows, and second and more notably, from the ups and downs in the market. When the market falls, it simply makes less, often a lot less depending on the depth of the bear market. T. Rowe Price, however, has been around a very long time and knows how to survive Wall Street volatility.
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2 High-Yield Stocks to Buy Hand Over Fist and 1 to Avoid