Annaly Capital Management shares are "on sale" right now and, even with the concerns regarding their government-backed mortgages, they have plenty of ways to keep paying a generous dividend and move their share price higher. If you can buy below $16-a-share it should offer a profitable long-term return.
Now is also an auspicious time to begin accumulating shares of Two Harbors. TWO has trailing-12-month operating margin and profit margin (around 83% for each category) that speaks to their outstanding management and growth potential.
With their mind-boggling earnings growth rate and plans to enrich shareholders through expanding their rental housing ownership program, there should be plenty of money to be made over time. It would not surprise me to see a total return in both NLY and TWO of 20% or more over the next year.At the time of publication, the author held no positions in any of the companies mentioned in this article. Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV