Second Quarter 2025 Investor Presentation July 23, 2025 This presentation, other written or oral communications, and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "anticipate," "continue," "illustrative" or similar ...

Annaly Capital Management (NLY) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.39%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.71 per share when it actually produced earnings of $0.72, delivering a surprise of +1.41%.Over the la ...

ANNALY CAPITAL MANAGEMENT, INC. REPORTS 2nd QUARTER 2025 RESULTS NEW YORK—July 23, 2025—Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter ended June 30, 2025. Financial Highlights Business Highlights Investment and Strategy Financing and Capital Corporate Governance • GAAP net income of $0.03 per average common share for the quarter • Earnings available for distribution ("EAD") of $0.73 per average common share for the quarter • Eco ...

Annaly Capital Management (NLY) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following yea ...

Core Viewpoint - Annaly Capital Management Inc. (NLY) is expected to report year-over-year growth in earnings and net interest income (NII) for the second quarter of 2025, with results anticipated on July 23, after market close [1][10]. Financial Performance - In the last reported quarter, Annaly posted earnings available for distribution per share of 72 cents, exceeding the Zacks Consensus Estimate, supported by improvements in the average yield on interest-earning assets [2]. - The consensus estimate for second-quarter NII is projected at $410.5 million, indicating a significant increase from the year-ago quarter's reported NII of $53.6 million [5]. - The Zacks Consensus Estimate for earnings remains unchanged at 71 cents, reflecting a year-over-year rise of 4.4% [11]. Market Conditions - Despite interest rate cuts by the Federal Reserve in 2024, mortgage rates remained stable in the mid-to-upper 6% range, leading to growth in refinancing activities and origination volumes [4]. - The primary-secondary spread averaged 1.06% in the second quarter of 2025, slightly lower than the first quarter's average of 1.12% [6]. Asset Management - A significant portion of NLY's mortgage-backed securities (MBS) holdings is expected to have experienced elevated levels of constant prepayment rates, positively impacting net premium amortization and supporting growth in interest income and average asset yield [5][10]. - The net servicing income consensus estimate of $121 million suggests a year-over-year increase of 13% [8]. Earnings Surprise History - Annaly has a strong earnings surprise history, beating the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 2.60% [3]. Earnings Prediction Model - The current model indicates that an earnings beat is unlikely for NLY this time, as it lacks the necessary combination of a positive Earnings ESP and a Zacks Rank higher than 3 [9].

Core Viewpoint - Annaly Capital Management offers a high dividend yield of over 14%, but its business model and volatility in dividends and stock price suggest it may not be suitable for traditional dividend investors [1][8][12]. Business Model - Annaly Capital operates as a real estate investment trust (REIT) that does not purchase physical properties but instead buys mortgages pooled into bond-like securities, which is a complex model not easily replicated by small investors [2][4]. - The company aims to profit from the difference between the interest earned on mortgage securities and its operational costs, including leverage costs, indicating a higher risk profile [4]. Market Dynamics - Mortgage securities traded by Annaly are subject to rapid value changes influenced by interest rates, housing market conditions, and mortgage repayment rates, making it challenging for most investors to monitor [5]. - The volatility in both the stock price and dividends has been significant, with the annual dividend showing a downward trend until its recent increase [8]. Investment Suitability - Mortgage REITs like Annaly are better suited for active and aggressive investors rather than traditional dividend investors, as the focus is on total return rather than consistent dividend income [6][12]. - While Annaly's total return has historically kept pace with the S&P 500, it does not provide a reliable income stream, which is a primary goal for many long-term dividend investors [11][12]. Portfolio Considerations - For investors focused on total return and diversification across asset classes, Annaly may be a suitable addition to their portfolio, provided they understand the importance of reinvesting dividends to achieve total return goals [11][13].

Core Insights - AGNC Investment Corp. (AGNC) and Annaly Capital Management (NLY) are leading players in the mortgage real estate investment trusts (mREITs) sector, both providing attractive long-term returns and substantial dividend yields, but differing in portfolio strategies and risk profiles [1] Capital Distribution & Dividend Yield - AGNC has a dividend yield of 15.34% with a payout ratio of 81%, but has not increased its dividend in the last five years [2] - NLY announced a cash dividend of 70 cents per share for Q1 2025, a 7.7% increase from the previous payout, with a current dividend yield of 14.37% and a payout ratio of 101% [3] - AGNC has a share repurchase plan authorizing up to $1 billion of common stock until December 31, 2026 [6] - NLY has a share repurchase program allowing for the repurchase of up to $1.5 billion of common stock until December 31, 2029, but has not executed any repurchases since its announcement [7] Business Model & Portfolio Diversification - AGNC focuses exclusively on agency mortgage-backed securities (MBS), which exposes it to volatility, while NLY employs a diversified capital allocation strategy that includes residential credit and mortgage servicing rights, reducing rate sensitivity [8][11] - NLY's diversified strategy is expected to contribute to long-term growth and stability, allowing it to capitalize on various market cycles [12] Interest Rate Sensitivity - AGNC is significantly affected by interest rate changes due to its concentrated agency MBS exposure, leading to increased borrowing costs and profit margin pressures [13][14] - AGNC's interest expenses surged from $75 million in 2021 to $2.9 billion in 2024, reflecting its vulnerability to rate hikes [15] - NLY's diversified portfolio allows it to better withstand interest rate volatility, resulting in lower increases in borrowing costs compared to AGNC [16] Benefits From Mortgage Rates - Both AGNC and NLY are expected to benefit from declining mortgage rates, with the average 30-year fixed-rate mortgage dropping from 6.95% to 5.80% year-over-year [19] - NLY is likely to see stronger book value appreciation due to tightening spreads in the Agency MBS market, while AGNC may benefit from increased refinancing activity [20][21] Earnings Estimates - AGNC's earnings estimates for 2025 and 2026 indicate year-over-year declines of 11.2% and 3.9%, respectively [22] - NLY's earnings estimates for the same period suggest year-over-year growth of 6.3% and 1.4% [25] Price Performance & Valuations - Over the past year, AGNC gained 12.6% and NLY rose 17.7%, outperforming the industry average of 8.6% [29] - AGNC trades at a forward price-to-tangible book (P/TB) multiple of 1.10X, while NLY trades at 0.99X, both above the industry average of 0.98X [31][34] Conclusion - NLY's recent dividend hike and diversified strategy position it as a more attractive option for long-term stability and growth compared to AGNC, which has faced challenges due to its concentrated agency MBS exposure [36][38]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes a community-oriented approach to investing, encouraging collaboration and education among investors [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [2] Group 2 - The article mentions that the service includes preferred and baby bond portfolios for conservative investors [2] - It highlights the importance of monitoring investment positions and providing exclusive alerts to members [4] - The content indicates that past performance does not guarantee future results, underscoring the need for careful investment consideration [5]

Core Viewpoint - Annaly Capital Management offers an ultra-high dividend yield exceeding 14%, while Toronto-Dominion Bank provides a more stable yield of 4.1%, making TD Bank a more reliable choice for dividend growth and reliability [1][9]. Group 1: Annaly Capital Management - Annaly Capital is a mortgage-focused real estate investment trust (REIT) that invests in pooled mortgages, functioning more like a mutual fund than a traditional landlord [3]. - The company has a history of cutting its dividend, which affects its total return; thus, reinvesting dividends is crucial for investors [4][5]. - The volatility of Annaly's dividend and stock price is significant, indicating that spending dividends rather than reinvesting may lead to disappointing outcomes [5]. Group 2: Toronto-Dominion Bank - Toronto-Dominion Bank is recognized for its reliability in dividend payments, having maintained its dividend during economic downturns, including the Great Recession [7]. - Despite facing regulatory challenges, TD Bank has consistently increased its dividend, showcasing its strong commitment to shareholders [8]. - The bank's yield of 4.1% is above the average yield of U.S. banks (2.6%) and the S&P 500 (1.3%), making it an attractive option despite the lower yield compared to Annaly [9]. Group 3: Regulatory Environment and Investment Timing - The strict banking regulations in Canada contribute to a conservative approach within TD Bank, reinforcing its strong market position [10]. - Recent performance of TD Bank's stock has improved as regulatory concerns have diminished, suggesting it is a favorable time to invest [11]. - For investors seeking long-term income stability, TD Bank presents a stronger option compared to the riskier business model of Annaly Capital [12].

Core Viewpoint - The article highlights three ultra-high-yield dividend stocks that are positioned to provide significant returns for patient investors, emphasizing the historical performance of dividend stocks compared to non-payers and the current favorable market conditions for these investments [1][2][5]. Group 1: Dividend Stocks Performance - Dividend stocks have historically outperformed non-payers, with an average annual return of 9.2% compared to 4.31% from 1973 to 2024, while also exhibiting lower volatility [5]. - The S&P 500's current yield is 1.24%, making ultra-high-yield dividend stocks with yields averaging 9.02% particularly attractive [6]. Group 2: Annaly Capital Management - Annaly Capital Management offers a yield of 14.88%, having recently increased its quarterly payout and maintaining a double-digit yield over the past two decades [7]. - The company is entering a favorable growth environment due to a rate-easing cycle, which is expected to enhance its net interest margin [10]. - Annaly's investment portfolio, valued at $84.9 billion, is heavily weighted towards highly liquid agency assets, allowing for leverage and profit maximization [11]. Group 3: Pfizer - Pfizer has a current yield of 7.1%, which is projected to be sustainable based on management's growth forecasts [14]. - Despite a decline in COVID-19 related sales from over $56 billion to $11 billion between 2022 and 2024, Pfizer's overall net sales grew by more than 50% during the same period [16]. - The acquisition of Seagen for $43 billion is expected to add over $3 billion in annual sales and strengthen Pfizer's oncology pipeline [17]. - Pfizer's shares are trading at around 8 times forecast earnings, which is below the average forward P/E ratio of 10.2 over the past five years, indicating a potentially undervalued stock [18]. Group 4: The Campbell's Company - The Campbell's Company has a dividend yield of nearly 5.1%, which is at an all-time high [19]. - The stock is currently at a 16-year low due to weakened demand in the snack food category and the impact of steel tariffs, but these challenges are considered short-term [20]. - The company benefits from selling essential goods, leading to predictable cash flow regardless of economic conditions, making it a stable investment during volatility [21]. - Campbell's is investing $230 million through fiscal 2026 to improve operational efficiency and support brand value, alongside ongoing innovation [22]. - The stock is trading at around 10 times forecast earnings, representing a 31% discount to its average forward P/E ratio over the past five years [23].