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Fresh off the latest FOMC meeting, one thing is clear: the Fed isn't in a rush.Jerome Powell made it known that rates are staying put for now. And while there's still a path to cuts later this year, it all hinges on how inflation behaves from here.The wildcard? Geopolitics.With the ongoing conflict in the Middle East, it's simply too early to tell how inflation and unemployment will shake out. Energy prices are already reacting. Supply chains could follow. And yet, despite all of that, Powell still describe ...

Core Viewpoint - Annaly Capital Management's preferred shares, particularly NLY-I, present a bullish investment opportunity due to recent price weakness, allowing for a favorable entry point with a potential yield to call of approximately 4.7% and a stripped yield of about 8.94% if held longer [3][22]. Company Overview - Annaly Capital Management is a mortgage REIT primarily invested in agency mortgage-backed securities, which are backed by Fannie Mae and Freddie Mac, providing a low-risk profile for its preferred shares [17]. Investment Opportunity - NLY-I shares are currently trading at $25.01, with a yield to call of 4.7%. If shares are not called immediately, investors could benefit from a stripped yield of approximately 8.94% [3][22]. - The shares became callable on June 30, 2024, and despite being callable for over 21 months, they have not yet been called, indicating potential for continued yield collection [4][22]. Relative Value - NLY-I is considered more attractive than NLY-F due to its lower price of $25.01 compared to NLY-F's $25.37, along with a better yield [5][8]. - The dividend policy for NLY-I results in slightly larger dividends compared to NLY-F, despite NLY-F having a higher floating spread [7][8]. Price Targets and Performance - Current targets for NLY-I suggest a slight positive yield to call, with expectations of a modest price increase of 0.5% to 1.5% in the near future [13][22]. - Historical performance indicates that NLY-I has rarely traded below $25, suggesting strong support at this price level [15][22]. Conclusion - The investment in NLY-I is characterized by a high yield and low downside risk, with expectations for modest upside in share price beyond dividend accrual [22][23].

Core Viewpoint - Annaly Capital Management's preferred shares, particularly NLY-I, present an attractive investment opportunity due to recent price weakness, allowing for a bullish rating despite a low yield to call [3][22]. Group 1: Investment Opportunity - NLY-I shares are currently trading at $25.01, offering an annualized yield to call of approximately 4.7%, which could improve to about 8.94% if shares are not called immediately [3][23]. - The shares became callable on June 30, 2024, and have not yet been called, indicating potential for continued yield collection [4][8]. - NLY-I is considered more attractive than NLY-F due to a lower price of $25.01 compared to NLY-F's $25.37, along with a better yield [5][8]. Group 2: Dividend Policy and Yield Calculation - NLY-I's dividend policy results in slightly larger dividends compared to NLY-F, despite NLY-F having a higher floating spread [7][8]. - The method of calculating dividends for NLY-I is more favorable, using the actual number of days in a dividend period divided by a 360-day year, leading to a higher effective yield [9][7]. - The annualized yield to call for NLY-F is negative, while NLY-I maintains a positive yield, making it a more favorable investment [8][22]. Group 3: Market Dynamics and Price Resistance - Historical data shows that NLY-I shares rarely trade below $25, indicating strong support at this price level due to retail investor interest [15][22]. - The expectation is for modest price improvement of around 1% to 1.5% beyond dividend accrual, which is currently running nearly 9% [23][22]. - The company has invested over $100k in acquiring 4,148 shares of NLY-I, reflecting confidence in the investment's potential [23].

Core Insights - Annaly Capital (NLY) has shifted its investment strategy from being primarily an agency mortgage REIT to incorporating investments in residential credit and mortgage servicing rights (MSRs) [1] Group 1: Company Overview - Annaly Capital has a long history as an agency mortgage REIT but is now diversifying its portfolio [1] - The company is focusing on high-yield preferred stocks and bonds that are undervalued compared to similar securities [1] Group 2: Investment Strategy - The investment approach includes utilizing proprietary screening software to identify high total return opportunities [1] - The Conservative Income Portfolio features a variety of investment ideas, including undervalued preferred stocks, baby bonds, and traditional bonds [1] Group 3: Portfolio Features - The Conservative Income Portfolio offers a covered call opportunity portfolio and a long-term portfolio of stocks and bonds [1] - Members receive exclusive articles, previews of public articles, macro analysis, and access to a community chat [1]

Core Viewpoint - The investment strategy is informed by a background in the oil and gas sector, emphasizing efficiency, carefulness, and discipline in decision-making [1] Investment Focus - The company has a sustained interest in U.S. equity markets, particularly in technology, energy, and healthcare sectors [1] - The investment approach has evolved from growth investing to a blend of value and growth, focusing on the underlying economics of businesses [1] Competitive Advantage - There is an emphasis on evaluating the durability of a company's competitive advantage, referred to as its "moat," and its ability to generate consistent free cash flow over time [1] Investment Philosophy - The philosophy includes a conservative orientation, seeking to minimize downside risk while looking for upside potential [1] - As retirement approaches, there is a shift towards prioritizing income-generating assets such as dividend-paying equities and REITs [1] Community Engagement - The company values participation in a community of investors to share insights on real-world business fundamentals and intelligent investing [1] Ecological Consideration - There is a commitment to investing in ecologically sensitive businesses, reflecting a broader concern for environmental impact [1]

Core Viewpoint - Annaly Capital Management has seen significant changes in institutional ownership and positive analyst ratings, indicating potential growth opportunities for investors. Institutional Ownership Changes - ProShare Advisors LLC increased its stake by 1.8%, owning 27,309 shares valued at $552,000 after purchasing 481 additional shares [1] - MCF Advisors LLC grew its position by 41.6%, now holding 1,688 shares valued at $35,000 after buying 496 shares [1] - Quadrant Capital Group LLC raised its stake by 1.4%, owning 39,282 shares valued at $794,000 after acquiring 524 shares [1] - Jupiter Wealth Management LLC increased holdings by 3.4%, now owning 16,621 shares valued at $347,000 after buying 551 shares [1] - Rafferty Asset Management LLC raised its stake by 5.3%, owning 11,093 shares valued at $224,000 after purchasing 555 shares [1] - Institutional investors and hedge funds collectively own 51.56% of the company's stock [1] Stock Performance and Financial Metrics - Annaly Capital Management's stock opened at $21.85, with a market cap of $15.69 billion and a price-to-earnings ratio of 7.86 [2] - The stock has a 52-week low of $16.59 and a high of $24.52, with a fifty-day simple moving average of $23.14 and a two-hundred-day average of $22.22 [2] Earnings and Dividend Information - The company reported an EPS of $0.74, exceeding analysts' expectations of $0.72 by $0.02, with a net margin of 34.02% and a return on equity of 15.80% [3] - Revenue for the quarter was $1.06 billion, significantly above the expected $567.67 million [3] - A quarterly dividend of $0.70 will be paid on April 30th, representing an annualized dividend of $2.80 and a yield of 12.8% [4] - The payout ratio is currently 100.72% [4] Analyst Ratings and Price Targets - Keefe, Bruyette & Woods raised the price target from $23.25 to $25.00, rating the stock as "outperform" [5] - Argus upgraded the stock to a "strong-buy" rating [5] - Royal Bank of Canada also increased its price target to $25.00, maintaining an "outperform" rating [5] - Wells Fargo reiterated an "overweight" rating with a price target of $25.00 [5] - BTIG Research upgraded the stock from "neutral" to "buy," setting a price objective of $25.00 [5] - The consensus rating is "Moderate Buy" with an average price target of $24.11 [5] Insider Activity - CFO Serena Wolfe sold 16,536 shares at an average price of $23.14, totaling $382,643.04, reducing her ownership by 8.72% [8] - COO Steven Francis Campbell sold 26,491 shares at an average price of $22.83, totaling $604,789.53, reducing his ownership by 12.95% [8] - Over the last quarter, insiders sold 71,252 shares valued at $1,639,995, with insiders owning 0.22% of the stock [8] Company Overview - Annaly Capital Management is a publicly traded REIT focused on generating income through investments in mortgage-related assets, including agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities [9] - The company aims to profit from the spread between interest earned on mortgage investments and its cost of funds, as well as from capital gains through active portfolio management [9] - Founded in 1997 and headquartered in New York City, Annaly has become one of the largest mortgage REITs in the U.S. [10]

Core Insights - The individual has extensive experience in the oil and gas sector, particularly in the Middle East, which informs their investment strategy [1] - The investment approach has evolved from growth investing to a blend of value and growth, focusing on business fundamentals and competitive advantages [1] - There is a shift towards income-generating assets as retirement approaches, emphasizing dividend-paying equities and REITs [1] Investment Philosophy - The investment strategy prioritizes understanding the underlying economics of businesses and their ability to generate consistent free cash flow [1] - A moderately conservative orientation is adopted, seeking to minimize downside risk while still looking for upside potential [1] - Investing is viewed as a means to achieve peace of mind, not just high returns, with a focus on ecologically sensitive businesses [1]

Core Viewpoint - Annaly Capital Management, Inc. has declared a cash dividend of $0.70 per common share for the first quarter of 2026, payable on April 30, 2026, to shareholders of record as of March 31, 2026 [1][1]. Company Overview - Annaly Capital Management, Inc. is a leading diversified capital manager with investment strategies focused on mortgage finance [1][1]. - The company's primary objective is to generate net income for distribution to stockholders while optimizing returns through prudent management of diversified investment strategies [1][1]. - Annaly is internally managed and has elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes [1][1]. Dividend Details - The declared dividend of $0.70 per share is part of the company's ongoing commitment to return value to its shareholders [1][1]. - The ex-dividend date for this payment is also set for March 31, 2026 [1][1].