Annaly Capital Management (NLY 0.25%) pays a whopping dividend. At its current payment rate, its forward dividend yield is approaching 13%. That's nearly 10 times higher than the S&P 500's dividend yield of slightly more than 1.3% over the past 12 months. Annaly's CEO, David Finkelstein, addressed the dividend concerns head-on during the first-quarter call. "Notwithstanding lower leverage, the prevailing return environment gives us confidence in the durability of the portfolio earnings profile," he said. Th ...

Core Viewpoint - The article emphasizes the importance of planning for the future while enjoying current market conditions, highlighting Annaly Capital Management, Inc. (NLY) as a company that offers a high yield and is strategically preparing for future growth [5][22]. Company Overview - Annaly Capital Management, Inc. (NYSE:NLY) currently yields 13.2%, with a book value of $19.73 per share and Earnings Available for Distribution (EAD) at $0.64 [5]. - NLY expects to achieve returns on equity between 12-16% across its various investment strategies [6]. Market Positioning - NLY's largest asset allocation is in Agency MBS, totaling $64.7 billion, with $6.7 billion in capital [6]. - The company has diversified housing finance strategies that offer attractive new money returns, with expected returns of 14%-16% for Agency, 12%-15% for Residential Credit, and 12%-14% for MSR [7]. Financial Strategy - NLY has maintained a conservative economic leverage position with significant liquidity, focusing on high-quality, prepay-protected collateral [7]. - The company is rotating its portfolio towards higher coupon and higher quality MBS, with the portion of coupons over 5.5% increasing from 12% to 38% of the portfolio [11]. Risk Management - NLY's interest rate swaps have an average maturity of 1.46 years with a pay rate of 3.53%, indicating a well-structured approach to managing interest rate risk [8]. - The company is highly selective in its MSR strategy, focusing on low coupon MSR to ensure stability [7]. Future Outlook - NLY anticipates stable earnings with potential upside when interest rates decline, benefiting from a larger pool of high coupon MBS [10][16]. - The company is positioned to capitalize on market recovery, with expectations of significant upside when the Federal Reserve cuts rates [21].

The mortgage real estate investment trust has suffered large book value declines in the last two years due to widening mortgage-backed security spreads as well as higher funding costs. With Annaly Capital Management's net interest margin improving in the last quarter and short-term inflation expectations implying a cooling of core inflation, I think the central bank could soon push the button and initiate the much-awaited rate-cutting cycle. Annaly Capital Management's mortgage-backed security portfolio is ...

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 ANNALY CAPITAL MANAGEMENT INC (Exact Name of Registrant as Specified in its Charter) Maryland 22-3479661 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 1211 Avenue of the Americas New York, New York 10036 (Address of principal executive offices) (Zip Code) (212) 696-0100 (Registrant's tele ...

Annaly Capital Management's earnings fell short of its dividend payment in the first quarter.Annaly Capital Management (NLY 0.59%) currently offers a monster dividend yield. At 14%, it's 10 times higher than the S&P 500's 1.4% dividend yield. However, the mortgage REIT's earnings during the first quarter were less than its dividend payment. That's a concern because the company has cut its payout in the past due to its inability to outearn its dividend. With market conditions growing more volatile in recent ...

Financial Data and Key Metrics Changes - The economic return for the quarter was 4.8% with earnings available for distribution (EAD) of $0.64 per share, reflecting a decrease of $0.04 compared to the previous quarter [36][39] - Book value per share increased to $19.73, primarily due to asset spread appreciation with minimal interest rate exposure [39] - Total cost of funds rose by 36 basis points to 3.78%, while net interest margin (NIM) decreased by 15 basis points to 143 basis points [9][18] Business Line Data and Key Metrics Changes - The Residential Credit portfolio ended the quarter at $6.2 billion in market value, with a 21% increase in the firm's capital [6] - The Mortgage Servicing Rights (MSR) portfolio reached $2.7 billion in market value, with transaction volumes remaining elevated and a commitment to purchase over $100 million in bulk packages expected to close in Q2 [7] - The Agency CMBS portfolio remained largely unchanged, with spreads tightening by 10 to 15 basis points [15][84] Market Data and Key Metrics Changes - The first quarter of 2024 saw resilient economic data, a healthy labor market, and an uptick in inflation, leading to a modest sell-off in interest rates [14] - The Onslow Bay correspondent channel registered $3.7 billion in expanded credit locks, up 40% quarter-over-quarter, with a robust pipeline of $2 billion at quarter end [37] - The MSR market experienced modest multiple expansion, contributing to the overall performance of the company's housing finance strategies [36] Company Strategy and Development Direction - The company is focused on expanding its Onslow Bay channel to solidify its position as a market leader in the Residential Credit market [16] - A conservative approach to interest rate risk is maintained, with the current leverage at its lowest level since 2014, allowing for flexibility in response to market changes [27] - The company aims to continue generating attractive risk-adjusted returns across its investment strategies while remaining vigilant to market volatility [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for all three business lines, citing strong economic data and a supportive capital market environment [38] - The company is prepared for potential volatility and is confident in the durability of its earnings profile, with expectations for a modest increase in NIM in the second quarter [77] - The management highlighted the importance of maintaining a disciplined approach to capital allocation and asset sourcing [38] Other Important Information - The company has approximately $6.2 billion in assets available for financing, unchanged from the previous quarter, indicating a strong liquidity position [41] - The average repo rates remained stable, with a slight nominal decline, reflecting the company's effective management of funding strategies [40] Q&A Session Summary Question: How are MSRs performing as rates increase and their effectiveness in hedging the MBS portfolio? - Management noted that MSRs are performing stably with increased cash flow, and slower speeds are beneficial for MSRs while being less favorable for MBS [21][22] Question: What is driving the increase in Onslow Bay correspondent activity? - The increase is attributed to the maturation of the correspondent channel, seasonal factors, and the growth of larger non-bank participants in the market [23] Question: How does the company view its capital allocation in the current environment? - The company is satisfied with its current capital allocation, emphasizing that all three sectors are fully scaled and contributing positively to returns [26] Question: What is the outlook for dividends in 2024? - Dividends are deemed appropriately set for 2024, dependent on asset yields and market conditions, with expectations for modest increases in NIM [77] Question: What changes have been made within the portfolio in response to recent rate movements? - The company sold a couple of billion in Agency MBS early in the quarter and is managing its rate exposure conservatively [55][56]

Annaly Capital Management, Inc. (NLY) reported first-quarter earnings available for distribution (EAD) per average share of 64 cents, meeting the Zacks Consensus Estimate. However, the figure declined from the 81 cents reported in the year-ago quarter.NLY registered a year-over-year decline in book value per share (BVPS) and the margin, while the average yield on interest-earning assets improved.Inside the HeadlinesNet interest income (NII) was negative $6.4 million in the reported quarter. The Zacks Consen ...

ANNALY CAPITAL MANAGEMENT, INC. REPORTS 1st QUARTER 2024 RESULTS NEW YORK—April 24, 2024—Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter ended March 31, 2024. Financial Highlights Business Highlights Investment and Strategy Financing and Capital "We were pleased to generate a 4.8% economic return in the first quarter as each of our three investment strategies contributed to our book value appreciation, as well as generated stable ...

Although Annaly Capital and UDR are both REITs, only one is appropriate for dividend investors looking for a reliable income stream.If you are looking for dividend income, you might find Annaly Capital Management's (NLY 1.69%) huge 14.2% dividend yield attractive. But you'd be better off buying UDR's (UDR 0.70%) much smaller 4.6% yield. Here's what you need to know before you end up adding a serial dividend cutter to your portfolio and pass up a historically high yield from a reliable dividend grower.Annaly ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED: December 31, 2023 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 22-3479661 ...