The admiral responsible for planning the attack on Pearl Harbor for the JapaneseI fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve – Admiral Isoroku YamamotoHigh Dividend Opportunities, #1 On Seeking AlphaSave yourself thousands of dollars by creating a portfolio that pays you to hold it. No selling required to fund your retirement dreams. Tired of going it alone or visiting a financial advisor who just doesn't seem to care? Join our lively group! Our Income Method ge ...

Core Viewpoint - Annaly Capital Management (NLY) is considered one of the "less risky" mortgage REITs, but its common stock carries significant risk and is not recommended for buy-and-hold strategies. Preferred shares are viewed as a better option for long-term investment within the sector [1][2][10]. Group 1: Common Stock and Preferred Shares - The common stock of NLY is often outside the buy range and should be treated as a trading security rather than a long-term investment [1]. - Preferred shares, particularly NLY-I, are seen as carrying minimal risk compared to other mortgage REITs, making them a more suitable option for investors looking for stability [2][10]. - Preferred shares typically trade around $25, but can fluctuate based on credit risk and dividend rates [3]. Group 2: Pricing and Call Risk - NLY-I is currently trading at $25.87, which is above the call value of $25, creating a risk for investors if the company decides to call the shares [4][5]. - If shares are called immediately, investors could face a loss of approximately $0.71 per share, leading to a negative annualized yield-to-call of -28.6% [5][10]. - The potential for an immediate call poses a significant risk, suggesting that investors should wait for a better entry point before investing in NLY preferred shares [6][10]. Group 3: Investment Strategy - Investors are advised to avoid purchasing NLY-I at current prices due to the substantial call risk, and it may be more prudent to sell and reallocate cash until conditions improve [7][10]. - The risk of losing on preferred shares primarily arises if the company calls them, which could lead to a less favorable investment compared to alternatives like short-term Treasuries [9]. - The current neutral rating for NLY-I reflects concerns over the risk/reward profile, with a potential loss of less than 3% being a significant consideration [8].

Core Viewpoint - Annaly Capital Management is expected to report significant growth in earnings and revenue, with a favorable outlook based on recent analyst estimate revisions [2][3]. Group 1: Stock Performance - Annaly Capital Management (NLY) closed at $21.61, reflecting a -0.32% change from the previous day, underperforming the S&P 500's gain of 1.77% [1] - The stock has increased by 0.23% over the past month, while the Finance sector has declined by 1.46% and the S&P 500 has decreased by 5.73% [1] Group 2: Earnings and Revenue Estimates - The upcoming earnings release is anticipated to show an EPS of $0.70, representing a 9.38% increase year-over-year, with revenue expected to reach $275 million, indicating a 4363.57% rise compared to the same quarter last year [2] - For the annual period, earnings are projected at $2.81 per share and revenue at $1.15 billion, reflecting increases of +4.07% and +364.09% respectively from the previous year [3] Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for Annaly Capital Management are crucial for investors, as positive revisions often indicate a favorable business outlook [3] - The Zacks Rank system currently rates Annaly Capital Management at 2 (Buy), with an average annual return of +25% for 1 ranked stocks since 1988 [5] Group 4: Valuation Metrics - Annaly Capital Management has a Forward P/E ratio of 7.71, which is lower than the industry average of 8.57, suggesting it is trading at a discount [6] - The company has a PEG ratio of 4.88, compared to the industry average of 1.61, indicating a higher expected earnings growth rate relative to its price [7] Group 5: Industry Context - The REIT and Equity Trust industry, part of the Finance sector, currently holds a Zacks Industry Rank of 202, placing it in the bottom 20% of over 250 industries [7][8]

Harrison is a financial analyst who has been writing on Seeking Alpha since 2018 and has closely followed the market for over a decade. He has professional experience in the private equity, real estate, and economic research industry. Harrison also has an academic background in financial econometrics, economic forecasting, and global monetary economics.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such position ...

Core Viewpoint - Annaly Capital Management, Inc. (NLY) announced a cash dividend of 70 cents per share for Q1 2025, representing a 7.7% increase from the previous payout, and the stock rose 2.4% following the announcement [1] Dividend Information - The dividend will be paid on April 30, 2025, to shareholders of record as of March 31 [1] - In March 2023, the company reduced its dividend by 26% to 65 cents [2] - Currently, NLY's payout ratio stands at 96% of its earnings, with an annual dividend yield of 12.03% based on a closing price of $21.61 [2] Capital Distribution Activities - On December 31, 2024, the board authorized a share repurchase program allowing up to $1.5 billion in buybacks, but no shares have been repurchased since the announcement [3] Liquidity and Leverage - Annaly is focused on improving liquidity and reducing leverage, with a strong liquidity position as of Q4 2024 [4] - The company has an unencumbered asset portfolio totaling $5.8 billion, which can provide liquidity during adverse market conditions [4] - A strong balance sheet is expected to support sustainable capital distributions [4] Price Performance - Over the past year, NLY shares have increased by 26.7%, outperforming the industry growth of 8.8% [5] Zacks Rank - Annaly currently holds a Zacks Rank 2 (Buy) [7]

Group 1: High-Yield Dividend Stocks - AGNC Investment and Annaly Capital are mortgage REITs offering an average yield of 13.2%, requiring an investment of $7,580 for $1,000 in annual dividend income [1] - AGNC Investment has a current yield of 14.2%, while Annaly Capital offers a yield of 12.2% [3][7] Group 2: Company Operations and Financials - AGNC Investment borrows at low short-term rates to invest in long-term mortgage-backed securities, with a significant increase in average cost of funds by 373% to 2.89% over two years [4] - Annaly Capital's portfolio is 87% invested in agency-backed securities, with a diversified revenue stream including a residential credit operation that securitized $11 billion in loans in 2024 [8] - In Q4 2024, Annaly's average cost of interest-bearing liabilities decreased to 3.79%, resulting in a net income of $0.78 per share, supporting a quarterly dividend of $0.72 [10] Group 3: Market Concerns - Both AGNC and Annaly face pressure from fears of inflation due to a potential trade war, which could lead to increased interest rates [4][7] - AGNC's stock price has declined by approximately 47.6% since its debut in 2008, but it has provided a total return of 470% through dividends [6]

Group 1 - The article discusses the investment strategies offered by Sensor Unlimited, focusing on high income and high growth through dynamic asset allocation [1][2] - Sensor Unlimited has a decade of experience covering the mortgage market, commercial market, and banking industry, with expertise in asset allocation and ETFs [2] - The investment group provides two model portfolios: one for short-term survival/withdrawal and another for aggressive long-term growth [1]

Group 1 - Annaly Capital Management (NLY) closed at $21.69, with a daily increase of +1.31%, outperforming the S&P 500's gain of 1.12% [1] - Over the past month, NLY shares have risen by 4.44%, while the Finance sector and S&P 500 have decreased by 1.89% and 4.13%, respectively [1] Group 2 - The upcoming earnings report for Annaly Capital Management is expected to show an EPS of $0.70, reflecting a 9.38% increase year-over-year, with projected revenue of $275 million, up 4363.57% from the previous year [2] - For the full year, earnings are projected at $2.81 per share and revenue at $1.15 billion, indicating increases of +4.07% and +364.09% from the prior year [3] Group 3 - Recent revisions to analyst forecasts for Annaly Capital Management are important as they indicate short-term business trends and analyst sentiment regarding the company's profitability [4] - The Zacks Rank system, which reflects these estimate changes, currently ranks Annaly Capital Management as 1 (Strong Buy), with a consensus EPS projection that has increased by 1.72% in the last 30 days [6] Group 4 - Annaly Capital Management has a Forward P/E ratio of 7.61, which is lower than the industry average of 8.63, and a PEG ratio of 4.82 compared to the industry average of 2.97 [7] - The REIT and Equity Trust industry, which includes Annaly Capital Management, has a Zacks Industry Rank of 191, placing it in the bottom 24% of over 250 industries [8]

Core Insights - Annaly Capital Management's fourth-quarter 2024 adjusted earnings per share (EAD) were 72 cents, surpassing the Zacks Consensus Estimate of 67 cents and increasing from 68 cents in the previous year [2] - The company's book value per share (BVPS) declined year-over-year to $19.15, down 1.5% from $19.44 [6] - Annaly's net interest income (NII) for the reported quarter was $187.3 million, missing the Zacks Consensus Estimate of $242 million, but improved from a negative $53.6 million in the prior-year quarter [4] Financial Performance - For the full year 2024, adjusted EAD per share was $2.7, beating the Zacks Consensus Estimate of $2.66, but lower than $2.86 reported in the previous year [2] - The average yield on interest-earning assets increased to 5.26% from 4.64% year-over-year, while the average economic costs of interest-bearing liabilities rose to 3.79% from 3.42% [5] - The net interest spread (excluding premium amortization adjustment) improved to 1.47% from 1.22% in the prior-year quarter, and the net interest margin increased to 1.71% compared to 1.58% in the fourth quarter of 2023 [5] Asset and Capital Management - Annaly's total assets reached $103.6 billion, reflecting a 2% increase from the prior quarter [4] - The economic capital ratio improved to 14.6%, up from 14% in the previous year [6] - Economic leverage decreased to 5.5X as of December 31, 2024, down from 5.7X sequentially and year-over-year [6] Market Position and Outlook - Estimates for Annaly have been trending upward, leading to a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11] - The company generated an annualized EAD return on average equity of 14.27% in the fourth quarter, an increase from 13.76% in the prior-year quarter [7] - Annaly's VGM Score reflects a poor Growth Score of F, a Momentum Score of B, and an overall aggregate score of D [9][10]

Group 1 - Annaly Capital Management Inc (NLY) has reached a key level of support and is showing potential for a bullish breakout due to a "golden cross" formation, where the 50-day simple moving average has crossed above the 200-day simple moving average [1] - The golden cross indicates a positive trend reversal after a downtrend, suggesting that NLY could continue to gain momentum towards higher prices [2] - NLY shares have increased by 6.2% over the past four weeks, and the company holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong bullish sentiment [3] Group 2 - There have been three upward revisions in earnings estimates for NLY over the past 60 days, with no downward revisions, leading to an improved Zacks Consensus Estimate for the current quarter [3] - The combination of positive earnings outlook and technical indicators suggests that investors may want to monitor NLY for potential gains in the near future [4]