Piper Sandler Eyes 2 Dividend Stocks Offering Yields as High as 13%

Market Overview - The bull market experienced a pause last week due to concerns in the U.S. regional banking sector, with two banks revealing issues related to bad and fraudulent loans, raising fears of deeper systemic problems [1] Investment Strategy - The current market conditions may prompt investors to consider defensive plays, particularly dividend stocks, which are generally more stable and less volatile compared to riskier asset classes [2] Company Profile: Annaly Capital (NLY) - Annaly Capital is a leading mortgage REIT and diversified capital manager based in New York, primarily investing in mortgage-related assets, including agency mortgage-backed securities and other real estate credit instruments [4][5] - The company's agency MBS portfolio is its main revenue generator, with a total portfolio valued at $89.5 billion as of the end of Q2, where $79.5 billion is invested in the Agency MBS strategy, accounting for 89% of total assets [6] Financial Performance - In the last quarter, Annaly Capital generated an adjusted EPS of $0.73, surpassing analysts' expectations by $0.02, which is sufficient to cover its dividend of $0.70 [7] - The company offers a dividend yield of 13.6%, significantly higher than the sector average of 3.3% [7]