What Is the Dividend Payout for Annaly Capital Management Stock?

Core Viewpoint - Annaly Capital Management may reduce its high dividend yield in the future, which could impact income-focused investors who are attracted to its substantial quarterly distributions [1][2]. Company Overview - Annaly Capital Management is a mortgage real estate investment trust (REIT), making it sensitive to various factors such as mortgage demand, repayment trends, delinquency rates, and interest rate changes [4]. - The stock has shown significant volatility and has underperformed compared to the S&P 500 this year [4]. Dividend Information - The company declared a second-quarter dividend of $0.65 per share, which translates to an annualized dividend of $2.60, resulting in a forward annual dividend yield of 13% if the stock trades around $20 [5]. - Despite reporting a GAAP-measured quarterly profit in the first quarter of 2024, there is no guarantee of consistent dividends due to the company's history of distribution reductions [6]. Investment Considerations - Investors are advised to focus on understanding the company and its operations rather than solely chasing high dividend yields, as high volatility could diminish the appeal of the distributions [3][4]. - Future payouts may be threatened by unfavorable changes in the mortgage market, indicating potential risks for income-focused shareholders [6].