If the Fed Keeps Cutting Interest Rates, This Stock Could Be a Winner

Annaly Capital Management (NYSE: NLY) looks like a dividend stock but doesn't act like one. This is hugely important right now as investors assess the potential for additional interest-rate cuts by the Federal Reserve.Lower rates will probably be good for Annaly, but that's only important for investors who are looking for a total-return investment. If you're looking for dividend income, here's why Annaly has no place in your portfolio.As a mortgage real estate investment trust (REIT), Annaly Capital owns mortgages that have been pooled together into bond-like securities. These mortgage-backed securities (MBS) trade all day long on the open market. Furthermore, interest-rate changes can quickly affect the value of MSBs, including those held in Annaly's portfolio.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool