Core Viewpoint - Preferred shares are presenting an attractive investment opportunity with a yield of approximately 9.5%, offering a balance of income and stability for investors seeking consistent returns [1][13]. Investment Characteristics - Preferred shares rank above common equity in the capital structure, providing a lower risk profile compared to common stock, particularly in the mortgage REIT sector [2]. - Annaly Capital Management's preferred shares, specifically NLY-F, are highlighted for their low risk rating of 1 on a scale of 1 to 5, indicating a safer income investment [3][11]. Specific Share Analysis - NLY-F is currently priced at $25.18, with a yield of 9.48% and an annualized dividend of approximately $2.3881, making it a more attractive option compared to NLY-G, which has a lower yield and dividend [5][8]. - NLY-F and NLY-I are noted to pay about $0.20 more in dividends annually than NLY-G, justifying their higher price [9]. Call Risk and Market Dynamics - There is a potential call risk associated with these preferred shares, as the company can call shares with a 30-day notice, but this risk can be managed by selecting appropriate entry prices [7][12]. - The market conditions may influence the performance of these shares, with NLY-F and NLY-I expected to hold up better during periods of market stress compared to NLY-G [12]. Final Recommendations - For long-term investors seeking steady returns, NLY-F and NLY-I are recommended over NLY-G, despite a slight call risk, due to their strong backing and attractive yields [13].