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 ...

Core Viewpoint - Annaly Capital Management is experiencing a positive shift in its stock performance, with a recent increase of 1.14% and a notable growth in revenue expected in the upcoming earnings report, despite a decline in EPS compared to the previous year [1][2]. Group 1: Stock Performance - Annaly Capital Management's stock closed at $19.44, reflecting a +1.14% change from the previous trading day, outperforming the S&P 500's loss of 0.6% [1]. - Over the past month, shares have gained 1.32%, surpassing the Finance sector's gain of 1.12% but lagging behind the S&P 500's gain of 3.15% [1]. Group 2: Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.65, which is a decrease of 9.72% from the same quarter last year [2]. - Revenue is forecasted to be $318 million, indicating a significant growth of 1094.99% compared to the corresponding quarter of the prior year [2]. Group 3: Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $2.62 per share and revenue of $958 million, reflecting changes of -8.39% and +960.09% respectively from the previous year [3]. Group 4: Analyst Projections - Recent shifts in analyst projections for Annaly Capital Management are important for investors, as positive revisions indicate a favorable outlook on the company's business health and profitability [4]. Group 5: Valuation Metrics - Annaly Capital Management is currently trading at a Forward P/E ratio of 7.34, which is a discount compared to the industry average Forward P/E of 7.46 [7]. - The REIT and Equity Trust industry, part of the Finance sector, has a Zacks Industry Rank of 212, placing it in the bottom 16% of over 250 industries [7].

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% ...

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]