Although you are correct about the danger of chasing yield,
Which mREIT is safer than $NLY?
Between NLY and RITM (NRZ) my capital has decreased by 32% over the past 9 + years but if you include the divvies i have earned about 140% in income.
Unless the companies are in danger of going out of business, I don't see the risk, and yes both NLY and RITM has cut the divvy especially Ritm Substancial (50%)
Yet they are keep laying eggs.
High Dividend, High Risk: 4 High-Yield Stocks We No Longer Trust
AGNC Investment Corp. Or General Dynamics: Which Is Suitable For Retirement Accounts?
Good distinction, $AGNC is not for the faint of heart. It's like $NLY or $PSEC, in that wars that been waged over these from both camps.