Double your money easily in 5 years with the divy.
NLY double assumes divvy holds steady and will not be significantly cut over the next 5 years.Also, after divvy paid, NLY price returns back to the ex-divvy date. Don't be surprised if NLY divvy in 6/10 be in a range of 0.45 - 0.60.Since the last divvy 3/30/10 at about 17.88 or so, NLY hasn't recovered; worse, hasn't recovered since "flash" trade date of 5/6/10. Can't get greedy...divvy over 12% with NAV within 10% is worth the buy. Watch the downside if 14<NLY<18 is violated.