Investors are living in constant fear of the next recession. They are right, there will be another recession. The problem is, we never know when a recession is going to happen. Just like if you live in certain parts of theRida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some ...

Core Viewpoint - Annaly Capital Management, a mortgage REIT, offers a high dividend yield of 12.8%, attracting investor interest, but its dividend payments are volatile and influenced by interest rate changes [2][8]. Company Overview - Annaly Capital Management primarily invests in agency mortgage-backed securities (MBS), which constitute approximately 80% of its portfolio, along with non-agency residential mortgage loans and mortgage servicing rights [2][3]. - The company employs leverage to enhance returns, with a leverage ratio of 7.1 times equity as of September 30 [3][4]. Financial Performance - The company's third-quarter earnings available for distribution (EAD) increased to $0.73 per share, reflecting a 10.6% year-over-year growth [6]. - The annualized EAD return on equity was reported at 14.7%, up from about 13% a year prior [7]. Dividend Analysis - Annaly's current quarterly dividend is $0.70, which is covered by the last quarter's EAD [8]. - The dividend yield of 12.8% significantly exceeds the S&P 500 index yield of 1.2%, but the company's dividends have fluctuated, with quarterly dividends dropping from $0.88 in 2022 to $0.65 in the following year [8][11]. Market Context - The company's market capitalization stands at $15 billion, with a current stock price of $22.00 [10]. - Economic uncertainties, including inflation and potential interest rate changes by the Federal Reserve, pose risks to the company's performance and dividend stability [11].

Key Takeaways Annaly Capital maintains a 13.02% dividend yield and a 97% payout ratio to ensure stable returns.A new $1.5B stock repurchase program runs through 2029 to enhance shareholder value. NLY's $8.8B liquidity cushion supports its ability to sustain dividends and buybacks.One of the most closely watched aspects of Annaly Capital Management, Inc.’s (NLY) financial profile is its dividend policy. This publicly traded mortgage real estate investment trust (mREIT) offers favorable long-term stockholder ...

Group 1 - The article discusses the accessibility of 30-year loans at low interest rates for many Americans, highlighting the concept of "The American Dream" of homeownership [1] - Rida Morwa, a seasoned investment and commercial banker, has over 35 years of experience and focuses on high-yield investment strategies [1] - The Investing Group High Dividend Opportunities aims for sustainable income through high-yield investments, targeting a safe +9% yield [1] Group 2 - The service includes features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios, and regular market updates [1] - The philosophy of the service emphasizes community, education, and the belief that investors should not invest alone [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______________ TO _________________ COMMISSION FILE NUMBER: 1-13447 ANNALY CAPITAL MANAGEMENT INC (Exact Name of Registrant as Specified in its Charter) Maryland 2 ...

Market Analysis by covering: Annaly Capital Management Inc. Read 's Market Analysis on Investing.com ...

Core Insights - The article discusses the investment positions of analysts in specific companies, highlighting their long positions in NLY and AGNC [1]. Group 1 - Analysts have disclosed beneficial long positions in the shares of NLY and AGNC, indicating a positive outlook on these companies [1]. - The article emphasizes that the opinions expressed are personal and not influenced by any external compensation [1].

Core Insights - The article discusses the investment positions held by analysts in AGNC and NLY, indicating a beneficial long position in these shares [1]. Group 1 - Analysts express personal opinions on the investment landscape without receiving compensation from the companies mentioned [1]. - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [2]. - It clarifies that Seeking Alpha does not provide personalized investment advice and that the views expressed may not represent the platform as a whole [2].

Core Viewpoint - Annaly Capital Management (NLY) is a prominent player in the mortgage REIT sector, but investing in its common stock presents significant issues [1] Investment Options - Investors interested in mortgage REITs should consider preferred shares, which are suitable for both risk-averse investors and those seeking higher returns for taking on more risk [2] - Annaly Capital offers several preferred shares, with NLY-F currently near a buy rating, priced at $25.49 [2] Preferred Shares Analysis - NLY-F is approximately $0.16 above the buy rating, with a target price that accounts for call risk [3] - If Annaly calls shares of NLY-F immediately after purchase, investors could lose about $0.15 per share, although the likelihood of this happening is not 100% [3] - The dividend for NLY-F may decrease next quarter due to forecasts for the Fed Funds Rate, which influences short-term rates and dividend rates [3] Rate Expectations - If the Federal Reserve is expected to cut rates multiple times, investors may find preferred shares less attractive [4] - Conversely, if only 1 to 2 rate cuts are anticipated, preferred shares may appear more appealing [4] Financial Ratios - Annaly has a strong common equity to preferred equity liquidation ratio of 6.81, which increases to 7.31 when considering market cap [5] - This ratio indicates a solid cushion for preferred shareholders in the event of liquidation [5] Investment Strategy - Mortgage REITs, including Annaly, are not ideal for risk-averse investors due to their inherent risks and should be treated as trading securities [7] - Annaly's common shares have seen substantial price increases, leading to a perception of being overpriced [7] Market Positioning - The market cap to preferred share value ratio helps assess whether a mortgage REIT is trading above or below book value, influencing investor sentiment [8] - Annaly's preferred shares, particularly NLY-F and NLY-I, are more likely to be called due to their higher dividends compared to other preferred shares [9] Alternative Options - NLY-J is another viable option for investors, offering comparable yields but trading at a premium to its base value [10] Conclusion - Annaly's common shares have limited upside potential after a strong performance, making them less suitable for long-term holding [11] - Preferred shares are recommended for long-term positions due to their solid income and lower volatility compared to common stock [11] - NLY-F is close to a buy rating, and investors should wait for a dip into the buy range before considering purchases [12]

Core Insights - Annaly Capital Management, Inc. (NLY) reported third-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, surpassing the Zacks Consensus Estimate of 72 cents, and an increase from 66 cents in the same quarter last year [1][9] - The average yield on interest-earning assets improved to 5.40%, contributing to a net interest margin of 1.70%, while the book value per share (BVPS) declined to $19.25 from $19.54 year-over-year [3][4][9] Financial Performance - Net interest income (NII) for the quarter was $275.8 million, which fell short of the Zacks Consensus Estimate by 38.3%, compared to $13.4 million in the prior-year quarter [2] - Total assets increased to $125.9 billion, reflecting a 12.2% rise from the previous quarter [2] - The net interest spread (excluding premium amortization adjustment) improved to 1.50%, up from 1.32% in the prior-year quarter [3] Key Ratios and Metrics - The economic capital ratio stood at 14.8%, an increase from 14.6% in the prior-year quarter [4] - The weighted average actual constant prepayment rate rose to 8.6%, compared to 7.6% in the year-ago quarter [4] - Economic leverage remained stable at 5.7X as of September 30, 2025 [4] Return Metrics - Annaly generated an annualized EAD return on average equity of 14.7%, up from 12.9% in the prior-year quarter [5] Market Outlook - The company's performance in the third quarter was bolstered by an increase in average yield and total assets, although the decline in BVPS raises concerns [6] - The financial market's uncertainty may pose challenges in achieving solid returns moving forward [6]