By Brad Thomas:
This is my third post in a series of articles that I call the “sucker-yield” REITs. In my last article I highlighted Annaly Capital Management (NYSE:NLY) as a REIT that I consider to be a volatile performer based upon its dividend growth record.
A fellow Seeking Alpha writer, Regarded Solutions, decided to redefine a “sucker-yield stock” in the text of his own article calling himself a “sucker.” I don’t think you’ll see any reference in my articles to describing someone a “sucker” as I was simply using the definition of “sucker-yield” as referenced by Josh Peters, the author of The Ultimate Dividend Playbook. He defines a “sucker yield stock” as
…a ridiculous yield combined with an inherently vulnerable business model that sends ominous signals of doom.
To better relate, my article was not meant to offend anyone, especially investors in Annaly; however, my intent was to provide investors with