NLY Stock Recent News

Annaly (NLY) reported earnings 30 days ago. What's next for the stock?

Investing in the stock market is all about making money.

Annaly Capital invests in mortgage-backed securities. The mortgage real estate investment trust uses leverage to boost returns for its investors.

Annaly's (NLY) diversified investment portfolio fortifies its core housing finance strategy. Yet, fluctuations in the mortgage market amid the tough macroeconomic backdrop continue to be a concern.

Annaly's second-quarter earnings showed an improving net interest spread. Inflation continued to decline in July, making a rate cut in September a near certainty, in my opinion. With inflation moderating and the Fed expected to cut rates, Annaly's dividend looks sustainable and I am upgrading shares to strong buy.

Annaly Capital Management covered its dividend with distributable earnings in Q2, showing a 96% payout ratio and a sustainable 13% yield. The mortgage trust's net interest margin turned positive in Q2 and could further improve with expected rate cuts, potentially leading to a higher margin of safety for dividends. Despite a slight decline in book value, Annaly Capital Management's stock is selling at a 4% premium to book value and could reach an intrinsic value of $21.40.

24/7 Wall St. Insights Stocks that pay above-average dividends can be the key to big total return gains.

Dividend stocks have crushed non-payers in the return column over the last 50 years. Eight of Wall Street's smartest (and richest) money managers sent shares of artificial intelligence (AI) juggernaut Nvidia to the chopping block in the March-ended quarter.

Annaly Capital Management delivered solid second-quarter results despite challenging market conditions. The mortgage REIT believes the market environment will improve in the coming quarters.

An increase in the average yield on interest-earning assets supports Annaly's (NLY) Q2 earnings, while a decline in NII acts as a spoilsport.