NLY Stock Recent News

Annaly Capital has the potential to generate meaningful long-term value as it currently yields over 15.5% annually. While the trend of a lower cash dividend is present, a reshuffled balance sheet and lower share price has maintained and even elevated the company's yield.

First, I revisit my last pairs trade (swap) article from 5 weeks ago, buying Cherry Hill Preferred “A” and Selling Armour Residential Preferred “C”, which had a 150% annualized return. Next, I cover what I believe is another very good swap opportunity, selling AGNC and Annaly preferred stocks and buying Two Harbors preferred stocks.

Rising interest rates could be a headwind for the company's massive dividend.

The market is not efficient, especially in a short-term timeframe. Investor sentiment drives daily price movements, often driven by emotions and not understanding.

The dividend will be at the mercy of the Federal Reserve.

High yields are used to offset high risk, something Annaly Capital isn't short of.

Part 1 of this article compares NLY's recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return (loss), and current valuation to 19 mREIT peers. My valuation assessment, current BV projection (BV as of 12/9/2022), and updated price target for NLY is in the “Conclusions Drawn” section of the article.

Annaly (NLY) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

These supercharged income stocks, with yields ranging from 8.5% to 17.7%, were on billionaire money manager's buy lists during the third quarter.

Among my many mistakes, a recent one was to bet on Annaly Capital back in March while correctly seeing the troubles ahead for the whole mREIT sector. My reasoning was that Annaly has the best chance of surviving these challenges.