Company Overview - Annaly Capital Management, Inc. (NLY) is focusing on diversifying its investment portfolio by investing in Agency MBS and residential credit, which aims to stabilize and enhance its core housing finance strategy [1] - As of March 31, 2024, Annaly's investment portfolio totaled $87.5 billion, reflecting its commitment to prudent asset selection and effective capital allocation [7] Financial Performance - Annaly's shares have declined by 2.7% over the past six months, which is an improvement compared to the industry's decline of 11.1% [2] - The company has reduced its first-quarter 2023 cash dividend by 26% to 65 cents per share due to a moderation in earnings available for distribution [5] - Annaly's capital distribution plans have raised concerns, particularly with an unutilized share repurchase program and a previously authorized $1.5 billion share repurchase plan [13] Market Conditions - The operating performance of mREITs, including Annaly, is influenced by broader financial market conditions and macroeconomic factors, such as mortgage market volatility and interest rate fluctuations [4] - The Federal Reserve's decision to keep interest rates unchanged and its revised forecast of only one rate cut this year may not bode well for the company [4] Liquidity and Leverage - Annaly has demonstrated a strong liquidity position, maintaining an unencumbered asset portfolio of $5.3 billion, which can provide liquidity during adverse market conditions [8] - The company is focused on improving its liquidity and reducing leverage, positioning itself to withstand economic stress and market volatility [8] Investment Strategy - Annaly's investment strategy includes traditional Agency mortgage-backed securities (MBS) for downside protection and investments in non-agency and credit-focused asset classes to enhance returns [7] - The company benefits from a diverse funding profile, primarily through repurchase agreements and various forms of equity, allowing for flexibility in enhancing its portfolio [10]

If you're an investor who doesn't already have access to billions in capital, you could probably learn a few things from the folks who do. Luckily, keeping tabs on the world's most successful investors isn't very hard to do. Let's look at their recent performance to find out if following the lead of billionaire fund managers makes sense for your portfolio. At recent prices, Annaly shares offer a mind-blowing 13.6% yield. The enormous yield is attracting funds run by billionaires. Citadel Advisors, which is ...

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Core Viewpoint - Annaly Capital's high dividend yield of 12.8% does not necessarily indicate a strong investment opportunity due to its volatile dividend history and the nature of its business model [1][4][12]. Group 1: Business Model - Annaly Capital operates as a mortgage REIT, which differs from traditional REITs that own physical properties; it primarily holds a portfolio of mortgage-backed securities [5][9]. - The value of Annaly's stock is closely tied to its mortgage bond portfolio, making it sensitive to market changes such as interest rates and property market dynamics [2][5]. Group 2: Dividend Performance - Annaly Capital has a history of volatile dividends, with a downward trend over the past decade, which is not suitable for investors seeking reliable passive income [6][11]. - The stock price of Annaly tends to fluctuate in line with its dividend changes, indicating that investors react strongly to dividend announcements [3][7]. Group 3: Investment Alternatives - Investors attracted to Annaly's high yield are encouraged to consider other income stocks with better dividend growth prospects, such as Realty Income, Vici Properties, and EPR Properties [13].

Core Viewpoint - Annaly Capital Management may reduce its high dividend yield in the future, which could impact income-focused investors who are attracted to its substantial quarterly distributions [1][2]. Company Overview - Annaly Capital Management is a mortgage real estate investment trust (REIT), making it sensitive to various factors such as mortgage demand, repayment trends, delinquency rates, and interest rate changes [4]. - The stock has shown significant volatility and has underperformed compared to the S&P 500 this year [4]. Dividend Information - The company declared a second-quarter dividend of $0.65 per share, which translates to an annualized dividend of $2.60, resulting in a forward annual dividend yield of 13% if the stock trades around $20 [5]. - Despite reporting a GAAP-measured quarterly profit in the first quarter of 2024, there is no guarantee of consistent dividends due to the company's history of distribution reductions [6]. Investment Considerations - Investors are advised to focus on understanding the company and its operations rather than solely chasing high dividend yields, as high volatility could diminish the appeal of the distributions [3][4]. - Future payouts may be threatened by unfavorable changes in the mortgage market, indicating potential risks for income-focused shareholders [6].

Core Viewpoint - Annaly Capital Management, a mortgage REIT, offers a high dividend yield of over 13%, but it may not be suitable for passive income investors due to its complex nature and declining dividend trend over the past decade [6][9][13]. Group 1: Dividend Yield and Total Return - The dividend yield for Annaly has consistently been in the double digits, making it appear attractive, but the actual dividend has been trending lower for over 10 years [6][9]. - Annaly's total return has outperformed the S&P 500 index since its inception in 1997, although the outperformance is relatively small [2][4]. Group 2: Target Investors - The stock may appeal to a specific group of investors, particularly large institutional investors like pension funds and family offices, who are looking for mortgage exposure in their portfolios [4][5]. - Small investors may lack the resources to manage the complexities associated with mortgage REITs, making Annaly more suitable for institutional investors [5][8]. Group 3: Risks and Considerations - Mortgage REITs like Annaly use leverage, which increases risk, and are affected by interest rate changes, housing market dynamics, and mortgage repayment trends [5]. - The high dividend yield can be misleading, as it does not necessarily indicate a stable or growing income stream for passive income investors [7][14].

Two high-octane dividend stocks -- with an average yield of 9.69% -- are ripe for the picking by opportunistic income seekers. Over the last century, the stock market has stood on a pedestal above all other asset classes. While investing in Treasury bonds, housing, gold, and oil would have increased your nominal wealth, none of these other asset classes has come anywhere close to the average annual returns delivered by stocks over the very long term. What makes Wall Street so special is its diversity of inv ...

Before you get sucked in by Annaly Capital's huge 13%-plus dividend yield, you'll want to take a look at the risk of a dividend cut. If there's one thing most dividend investors try to avoid at all costs, it is a dividend trap (a high-yield stock that is about to cut its dividend). But that's the past -- what about the future? Well, things aren't exactly rosy today. For example, Annaly's book value (basically the value of its mortgage bond portfolio) rose between the fourth quarter of 2023 and the first qua ...

The most recent trading session ended with Annaly Capital Management (NLY) standing at $19.44, reflecting a +1.14% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.6%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.08%. Heading into today, shares of the real estate investment trust had gained 1.32% over the past month, outpacing the Finance sector's gain of 1.12% and lagging the S&P 500's gain of 3.15% in that time. The investment commu ...

You should get to enjoy this puppy. He's much better than most of the images in this database. Uwe Krejci 3 Share Comparison Here's a table from the spreadsheet we use for analyzing shares: | © The REIT Forum | | Fixed-Rate Yields | Floating-Rate Yields | | | Dividend Accrual Dividend Data | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Spread | | | | | | | $25.61 | 20.60% | 20.57% | 10.31% | 10.50% | | 4 GOODS | SCHOOL | 50.62 | | 52,6472 | - 50.66 | | 526.43 | | 9.80% 9.58% ...