Annaly or AGNC: Which 16%-Yielding Mortgage REIT Is the Better Buy?

Annaly Capital and AGNC Investment are mortgage REITs offering yields above 16%, but both face significant risks from rising interest rates that have depressed their stock prices. While neither is suitable for traditional income investors due to volatile dividend histories, Annaly has a slight edge over AGNC due to its more diversified business model that includes mortgage servicing rights alongside mortgage securities.