Annaly Capital Management stands to benefit from moderating inflation and anticipated interest rate cuts, supporting higher net interest income and margins. The company recently raised its dividend by 8%, now yielding 14.5%, and maintains a payout ratio below 100%, reflecting strong distributable profit coverage. Shares trade at only a 2% premium to book value, offering attractive value compared to peers and potential for multiple expansion in a lower-rate environment.
The rate cut likely would be 25 basis points, or 1/4 of 1%. Are ultra-high-yield stocks a good fit for your portfolio in front of potential rate cuts?
NLY hikes dividends despite a 101% payout ratio, signaling confidence amid strong liquidity and a $1.5B buyback plan.
In the latest trading session, Annaly Capital Management (NLY) closed at $18.99, marking a +0.32% move from the previous day.
Annaly Capital is a mortgage REIT that has experienced some issues resulting in dividend cuts in recent years. More recently, the REIT raised its dividend, resulting in a 15% yield. NLY's mortgage backed securities are largely fixed rate so they benefit from falling rates--which I see materializing in the near term.
Annaly (NLY) reported earnings 30 days ago. What's next for the stock?
Annaly Capital Management (NLY) concluded the recent trading session at $19.18, signifying a +0.52% move from its prior day's close.
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Annaly Capital Management (NLY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NLY broke through the 200-day moving average, which suggests a long-term bullish trend.
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After reaching an important support level, Annaly Capital Management (NLY) could be a good stock pick from a technical perspective. NLY surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
NLY's lucrative dividend yield and portfolio-diversification efforts look impressive. Read on to know whether to buy the stock now.