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In a world where the average investor is losing faith in traditional savings accounts they are out to seek higher yielding, better paying dividends. In this article I've compiled a list of five stocks and that actually yield higher than 10%. These five stocks will enhance any portfolio whether you happen to be a growth investor or income investor.

Annaly Capital Management (NYSE:NLY) - Annaly Capital is a REIT which currently trades at a P/E ratio of 28.58 and yields 13.6%. By most investing standards the stock is pretty cheap, and when those variables are combined with the fact the company just generated $750 million dollars through a secondary offering I happen to find the stock very attractive. Under the direction of CEO Mark Ferrell, Annaly not only survived the subprime storm but is now track to create fresh revenue streams through their offering which will allow for better investment opportunities. Investors should begin to acquire moderate positions in NLY and then add to those positions when dividend dates approach.

Downside Risk: Annaly just recently reduced their quarterly distribution by $0.02/share and if these new revenue streams don't pan out as expected further cuts may very well be on the horizon.

Anworth Mortgage Asset Corp. (NYSE:ANH) - Primarily investing in the fixed income and US based real estate markets, ANH currently trades at a P/E ratio of 7.69 and yields 12.7%. Investors should note that not only is ANH pretty cheap, and carries almost no debt. The company is also one the only firms still financing and refinancing resident mortgage portfolios. For the second quarter analysts are calling for ANH to earn $0.20/share on revenue of $33.6 million, which should be right in line with what company will report around July 26th. Even though the last four quarters have missed estimates just slightly, I still think ANH is a great buy with a very attractive yield and solid management.

Downside Risk: Anworth Mortgage focuses a chunk of their business in the US real estate market and if the US experiences another housing crisis, the stock could see more than just a bottom.

Crexus Investment Corp. (NYSE:CXS) - With nearly zero debt and an EPS growth rate over 160%, CXS currently trades at a P/E ratio of 6.47 and yields 10.6%. First quarter earnings at Crexus were pretty good considering they missed analysts' expectations by $0.04/share. Net income rose nearly 350%, when the company reported $16.1 million when compared to only $4.6 million from the same year ago period. I'd be a bit cautious when acquiring a position, since I'm entirely sold on future earnings estimates, even though the yield is quite attractive.

Downside Risk: CXS is heavily invested in the commercial mortgage sector, where things tend to be a bit more riskier. That being said, the company has various interests in both Retail and Industrial properties and property complexes. If economic conditions hinder the growth of these particular investments and tenants go elsewhere or the mortgages go unpaid as is the case in several US regions (and not particularly CXS properties), investors could experience underperformance in the stock and sell CXS to new lows.

Dynex Capital (NYSE:DX) - DX is considered by many to be a non-agency mREIT or Mortgage Real Estate Investment Trust. The stock currently trades at P/E ratio of 8.47 and yields 12.3% making it a bargain at these levels. One of the bright spots for Dynex is the fact it trades under book value, creating a discount to investors who want to establish a position in the company. I like what the management is doing and how well they've structured their investment strategy. With the stock currently trading between $9 and $9.50 a share I'd begin to acquire a moderate to medium position in the company especially with its 12.3% yield.

Downside Risk: Even though Dynex has been one of the better performing mREITs as of late, they are still involved heavily in the investment of lower grade residential mortgages, which equates to much greater risk. That being said, DX falls further below book value especially if see another downturn in either the real estate or mortgage markets.

New York Mortgage Trust (NASDAQ:NYMT) - With first quarter net income rising $3.3 million when compared to the same period from a year ago and trading at a P/E ratio of 9.81, NYMT is one of the more attractive REITs. The stock, which has averaged a 13.77% yield over the last 5 years, currently yields 14.7% and trades in a 52 week range of $5.77-$7.98. The fact that NYMT completed its third acquisition of CMBS assets during the first quarter plays a key role in the company's strategy moving forward and I believe investors should begin to acquire moderate positions as the dividend date gets closer.

Downside Risk: If any of NYMT's three recent acquisitions don't contribute to the company's performance as expected, we could see a downturn in the performance of the company and a lower stock price.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 REITs That Yield 10% Or More