Latest news with #Annaly
Business Wire
6 days ago
- Business
- Business Wire
Annaly Capital Management, Inc. Announces 2 nd Quarter 2025 Common Stock Dividend of $0.70 per Share
NEW YORK--(BUSINESS WIRE)--The Board of Directors of Annaly Capital Management, Inc. (NYSE: NLY) ('Annaly' or the 'Company') declared the second quarter 2025 common stock cash dividend of $0.70 per common share. This dividend is payable July 31, 2025, to common shareholders of record on June 30, 2025. The ex-dividend date is June 30, 2025. About Annaly Annaly is a leading diversified capital manager with investment strategies across mortgage finance. Annaly's principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at Forward-Looking Statements This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as 'may,' 'will,' 'should,' 'estimate,' 'project,' 'believe,' 'expect,' 'anticipate,' 'continue,' or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of our assets; changes in business conditions and the general economy; our ability to grow our residential credit business; our ability to grow our mortgage servicing rights business; credit risks related to our investments in credit risk transfer securities and residential mortgage-backed securities and related residential mortgage credit assets; risks related to investments in mortgage servicing rights; the our ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting our business; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940; and operational risks or risk management failures by us or critical third parties, including cybersecurity incidents. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see 'Risk Factors' in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.
Yahoo
07-05-2025
- Business
- Yahoo
This More Than 14%-Yielding Dividend Stock is Surprisingly Raising Its Already Monster Payout
Key Points Annaly Capital Management recently increased its dividend payment. That increase followed a series of dividend cuts. The REIT is currently earning attractive returns on mortgage investments. 10 stocks we like better than Annaly Capital Management › Annaly Capital Management (NYSE: NLY) pays a monster dividend. The real estate investment trust's (REIT) yield is currently over 14%. That's a massive 10 times higher than the S&P 500. More often than not, dividends with yields over 10% seem to be screaming that a cut is forthcoming. However, that's not the case with this mortgage REIT's payout. Instead, the company recently gave investors a surprise dividend increase. Here's a look at whether Annaly is a solid option for investors seeking a big-time income stream. Image source: Getty Images. Bouncing back Annaly Capital Management has a three-pronged investment strategy: Agency MBS: Annaly invests in pools of residential mortgages guaranteed by government agencies such as Freddie Mac and Fannie Mae . Mortgage servicing rights: It invests in MSRs, which provide the right to service residential loans in exchange for a portion of the interest payments. Residential credit: The REIT invests in non-agency residential mortgage assets. It's a leader in investing in prime jumbo mortgages. The company uses leverage to invest in additional mortgages. It makes money on the spread between the interest it pays and the income earned by its investment portfolio. Annaly's investment spread was wider during the first quarter. That enabled the mortgage REIT to generate $0.72 per share of earnings available for distribution (EAD), its second straight quarter at that level. As the following table shows, the company's earnings have started to bounce back after declining in recent years: Data source: Annaly Capital Management. That improvement in its earnings enabled the company to raise its quarterly dividend from $0.65 to $0.70 per share. It's a partial reversal of the company's dividend cut in early 2023, when it slashed its payout from $0.88 to $0.65 per share. That cut was one of many the company has made over the years: Where will the dividend go next? Annaly's dividend history shows it tends to rise and fall with its EAD. While EAD had declined over the past couple of years, it stabilized and started rising during the last few quarters. That's due to a combination of investments to grow parts of its portfolio and higher returns for its mortgage investments. In early 2023, Annaly had an $85.5 billion investment portfolio consisting of:
Yahoo
28-04-2025
- Business
- Yahoo
AGNC Investment Vs Annaly: Which High-Yield mREIT is a Smarter Play?
AGNC Investment Corp. AGNC and Annaly Capital Management NLY are two of the biggest names within the mortgage real estate investment trusts (mREITs) industry. Both offer favorable long-term stockholder returns and massive dividend yields. But which one offers the better opportunity for investors right now? Let us break down the strengths, risks and growth potential of these two leading industry players. AGNC has maintained its focus entirely on agency mortgage-backed securities (MBS), a strategy that has positioned it as a strong player in this specialized market segment. The company primarily focuses on leveraged investments in Agency RMBS, including residential mortgage pass-through securities and collateralized mortgage obligations. A U.S. Government agency or a U.S. Government-sponsored enterprise guarantees the principal and interest payments for such investments. The fundamental outlook for fixed income, particularly agency MBS assets, has shown signs of improvement lately. AGNC Investment's management believes that the agency MBS market can benefit from a combination of factors, including a steepening yield curve and reduced rate volatility. However, execution will be crucial to achieving these advantages. Conversely, NLY has adopted a broader diversified capital allocation strategy. The company's investment portfolio includes residential credit, mortgage servicing rights (MSR), and agency MBS. This comprehensive strategy aims to lower volatility and sensitivity to interest rate changes while simultaneously generating appealing risk-adjusted returns. NLY's diversified investment strategy will likely be a key contributor to long-term growth and stability. Annaly's diversified strategy is not just for stability but also for long-term growth, with multiple aspects to pull across different cycles in the housing and credit markets. AGNC Investment and Annaly are showcasing strong capital distribution programs that reflect confidence in their liquidity and earnings stability. Both have a record of paying monthly dividends. AGNC currently has a staggering dividend yield of 16.27% compared with the industry's average of 11.3%. It currently sits at a payout ratio of 81%. The company has raised its dividend once in the last five years. NLY also pays a quarterly dividend. In March, it announced a cash dividend of 70 cents per share for the first quarter of 2025, marking a 7.7% hike from the prior payout. Its current dividend yield is 14.58%, and its payout ratio is 96% of its earnings. The company has raised its dividend twice in the last five years. Image Source: Zacks Investment Research Dividends aside, AGNC has a share repurchase plan in place. In October 2024, the company's board of directors terminated the existing stock repurchase plan and replaced it with a new plan authorizing it to repurchase up to $1 billion of common stock through Dec. 31, 2026. Similarly, Annaly has a share repurchase plan in place. In December 2024, NLY's board of directors authorized a common share repurchase program, which will expire on Dec. 31, 2029. Under the program, the company may repurchase up to $1.5 billion of its outstanding shares of common stock. AGNC and NLY are sensitive to interest rate changes, though the impacts vary. AGNC Investment's performance and prospects are significantly influenced by the interest rate environment due to its concentrated agency MBS exposure. While these government-backed assets offer low credit risk, they leave AGNC vulnerable to rapid shifts in short-term rates. When interest rates rise, AGNC's borrowing costs increase quickly, hurting profit margins. Though the company actively uses hedging strategies such as interest rate swaps and options to manage some of this exposure, hedges can only partially reduce the impacts. AGNC's financials have been adversely impacted since early 2022 when the Fed began its interest rate hiking cycle. It recorded interest expenses of $75 million in 2021, which surged 733% to $625 million in 2022. Also, the interest expenses rose 266% year over year to $2.3 billion in 2023. On the contrary, Annaly has positioned itself to better withstand interest rate volatility through its diversified portfolio, particularly with its investments in MSR, and residential and commercial credit assets. Given this, the increase in NLY's borrowing costs was lower than AGNC's in the period of high interest rates. In 2021, Annaly recorded an interest expense of $249 million, which increased by 425% to $1.3 billion in 2022. Also, interest expense rose 193% year over year to $3.8 billion in 2023. MSR increases in value when interest rates rise because higher rates reduce mortgage prepayment activity. This dynamic allows Annaly to offset the typical decline in agency MBS valuations that occurs during periods of rising rates. Residential credit includes non-agency mortgages and securitized loans that are more credit-sensitive than rate-sensitive, offering higher yields and different risk profiles than agency MBS. The Zacks Consensus Estimate for AGNC's 2025 and 2026 earnings implies year-over-year declines of 11.2% and 3.9%, respectively. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NLY's 2025 and 2026 earnings implies year-over-year increases of 5.6% and 1.2%, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Image Source: Zacks Investment Research Over the past year, both AGNC and NLY outperformed the industry. AGNC Investment has gained 11.2% and Annaly has risen 16.6% against the industry's decline of 0.2%. Image Source: Zacks Investment Research From a valuation standpoint, AGNC and NLY appear expensive relative to the industry. AGNC Investment is currently trading at a premium with a forward 12-month price-to-tangible book (P/TB) multiple of 1.07X, while Annaly is trading at a forward 12-month (P/TB) multiple of 0.98X. Both are above the industry average of 0.90X. Nonetheless, NLY is trading at a discount to AGNC. Image Source: Zacks Investment Research AGNC Investment and Annaly have a record of reducing dividends during stressful times, but NLY's recent payouts have been more stable than AGNC's. Also, Annaly has recently hiked its dividend, reflecting the company's confidence in its earnings and liquidity position. Further, AGNC has mainly exposure to the agency MBS sector, positioning it to have more exposure to rate-driven volatility. Alternatively, NLY provides diversification and balance, which are better suited to offset interest rate fluctuations and capitalize on opportunities. Annaly's 2025 and 2026 earnings growth trajectories are impressive. Also, in terms of price performance and valuation, NLY appears more attractive. Hence, investors looking for long-term stability with a higher dividend yield can consider parking their cash in the Annaly stock at current levels. Both AGNC and NLY currently carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-04-2025
- Business
- Yahoo
3 No-Brainer Ultra-High-Yield Dividend Stocks to Buy in April
Wall Street offers investors no shortage of ways to grow their wealth. With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, pretty much everyone is assured of finding one or more securities that'll help them meet their investment goals. But among these countless avenues investors can take, few have proved more successful over long periods than buying and holding high-quality dividend stocks. Businesses that pay a regular dividend to their shareholders typically have a few things in common. They're often: Profitable on a recurring basis. Time-tested in the sense that they've successfully navigated one or more recessions. Capable of providing a transparent long-term growth outlook. In other words, these are companies that investors can hold stakes in without losing sleep at night. But most importantly, they're, collectively, outperformers. In The Power of Dividends: Past, Present, and Future, the researchers at Hartford Funds, in collaboration with Ned Davis Research, compared the performance of dividend stocks to non-payers over a 50-year stretch (1973-2023). What they found was income stocks more than doubled up the non-payers on an annualized return basis -- 9.17% for the dividend stocks vs. 4.27% for the non-payers -- and did so while being less-volatile than the benchmark S&P 500. With the S&P 500 and Nasdaq Composite both falling into correction territory in March, anchoring your portfolio with dividend stocks can be an especially smart move. What follows are three ultra-high-yield dividend stocks -- sporting an average yield of 9.87% -- which make for no-brainer buys in April. The first supercharged dividend stock that can be confidently scooped up by investors to begin the second quarter is mortgage real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY). Although Annaly's nearly 13.8% yield might sound unsustainable, it's averaged a roughly 10% yield over the last two decades and has declared approximately $27 billion in dividends since its October 1997 initial public offering. Mortgage REITs might very well be Wall Street's most-disliked industry. They're highly sensitive to interest rate changes, as well as the velocity of moves made the by nation's central bank. The Federal Reserve rapidly increasing in its federal funds rate from March 2022 to July 2023, coupled with an inversion of the Treasury yield curve, drove up short-term borrowing costs and weighed down net interest margin and book value for Annaly and its peers. The good news for Annaly Capital Management is the central bank is now in the midst of a rate-easing cycle. Moreover, the Fed is walking on eggshells when it comes to shifting its monetary policy. The more telegraphed and deliberate the Fed is with its rate adjustments, the more time Annaly and its peers will have to adjust their asset portfolios to maximize profitability. Additionally, Annaly Capital Management predominantly deals with agency securities in its $80.9 billion portfolio. An "agency" asset is backed by the federal government in the event that the underlying instrument (in this case, mortgage-backed securities (MBS)) were to default. While this added protection pushes down the yields Annaly nets on the MBSs it buys, it also opens the door to the use of leverage to pump up its profitability. With yield-curve inversions lessening, the Fed no longer involved in MBS purchases, and mortgage REITs historically performing their best when interest rates are declining, the table is set for Annaly Capital Management's net interest margin and book value to climb. A second ultra-high-yield dividend stock that makes for a no-brainer buy in April is top-tier retail REIT, Realty Income (NYSE: O). Realty Income, which doles out its dividend on a monthly basis, has increased its payout for 110 consecutive quarters. Though the prospect of a U.S. recession has weighed on retail stocks, Realty Income is ideally positioned to take advantage of the long-term growth of the U.S. economy. Its key advantage can be found in the composition of its commercial real estate (CRE) portfolio. It closed out 2024 with 15,621 CRE properties, approximately 91% of which are, per Realty Income, "resilient to economic downturns and/or isolated from e-commerce pressures." If investors dig into which companies and industries Realty Income leases to, they'll find that they're predominantly brand-name businesses in stand-alone locations that drive traffic to their stores in any economic climate. For example, even if the U.S. were to fall into a recession, consumers are still going to visit grocery stores, drug stores, dollar stores, convenience stores, and automotive service locations, all of which among the top industries by annualized contractual rent in Realty Income's CRE portfolio. Vetting and contract length matter, too. A very low percentage of the company's lessees fail to pay their rent, and most tend to lock in their rental agreements for long periods. There's little concern about frequent turnover, and the company's funds from operations is highly predictable. Realty Income is also historically inexpensive, relative to its future cash flow. Over the trailing-five-year period, shares have averaged a multiple to cash flow of roughly 16.2. But based on the consensus Wall Street forecast for 2026 cash flow, investors can pick up shares of Realty Income right now for 22% below this five-year average. The third no-brainer ultra-high-yield dividend stock to buy in April is coal producer Alliance Resource Partners (NASDAQ: ARLP). Yes, I did say "coal," and also yes, the company's yield of more than 10% has been sustainable. When this decade began, coal stocks were believed to be as good as dead. The push toward clean-energy solutions, such as solar and wind, were expected to meaningfully reduce demand for dirtier fuels. But when the COVID-19 pandemic struck, it tipped the scales back toward time-tested energy sources. Even though the spot price of coal is now well off of its pandemic high, Alliance Resource has enjoyed a resurgence in demand. Three factors allow this relatively little-known coal producer to stand out from its peers. First, management has done an excellent job of locking in volume and price commitments years in advance. Securing deals when the price of coal was higher than it is now will ensure consistent operating cash flow for years to come. It also leads to a level of cost and cash flow transparency that most mining-oriented companies lack. Secondly, the company's management team has historically taken a very conservative approach when expanding production. Even when the per-ton coal price rocketed higher during the pandemic, Alliance Resource Partners' management team edged production higher. While many peers have struggled under the weight of crippling debt, Alliance Resource ended 2024 with only $221.4 million in net debt. Its financial flexibility is superior to other coal producers. The third variable that makes Alliance Resource Partners special has been its foray into oil and natural gas royalties. Diversifying its operations into oil and gas allows the company to take advantage of pure increases in the spot price of two core energy commodities. At an estimated 8.5 times forward-year earnings, Alliance Resource Partners' stock remains a solid value amid a historically pricey market. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $285,647!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,315!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $500,667!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 1, 2025 Sean Williams has positions in Annaly Capital Management. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. 3 No-Brainer Ultra-High-Yield Dividend Stocks to Buy in April was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
04-04-2025
- Business
- Globe and Mail
3 No-Brainer Ultra-High-Yield Dividend Stocks to Buy in April
Wall Street offers investors no shortage of ways to grow their wealth. With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, pretty much everyone is assured of finding one or more securities that'll help them meet their investment goals. But among these countless avenues investors can take, few have proved more successful over long periods than buying and holding high-quality dividend stocks. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Businesses that pay a regular dividend to their shareholders typically have a few things in common. They're often: Profitable on a recurring basis. Time-tested in the sense that they've successfully navigated one or more recessions. Capable of providing a transparent long-term growth outlook. In other words, these are companies that investors can hold stakes in without losing sleep at night. But most importantly, they're, collectively, outperformers. In The Power of Dividends: Past, Present, and Future, the researchers at Hartford Funds, in collaboration with Ned Davis Research, compared the performance of dividend stocks to non-payers over a 50-year stretch (1973-2023). What they found was income stocks more than doubled up the non-payers on an annualized return basis -- 9.17% for the dividend stocks vs. 4.27% for the non-payers -- and did so while being less-volatile than the benchmark S&P 500. With the S&P 500 and Nasdaq Composite both falling into correction territory in March, anchoring your portfolio with dividend stocks can be an especially smart move. What follows are three ultra-high-yield dividend stocks -- sporting an average yield of 9.87% -- which make for no-brainer buys in April. Annaly Capital Management: 13.79% yield The first supercharged dividend stock that can be confidently scooped up by investors to begin the second quarter is mortgage real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY). Although Annaly's nearly 13.8% yield might sound unsustainable, it's averaged a roughly 10% yield over the last two decades and has declared approximately $27 billion in dividends since its October 1997 initial public offering. Mortgage REITs might very well be Wall Street's most-disliked industry. They're highly sensitive to interest rate changes, as well as the velocity of moves made the by nation's central bank. The Federal Reserve rapidly increasing in its federal funds rate from March 2022 to July 2023, coupled with an inversion of the Treasury yield curve, drove up short-term borrowing costs and weighed down net interest margin and book value for Annaly and its peers. The good news for Annaly Capital Management is the central bank is now in the midst of a rate-easing cycle. Moreover, the Fed is walking on eggshells when it comes to shifting its monetary policy. The more telegraphed and deliberate the Fed is with its rate adjustments, the more time Annaly and its peers will have to adjust their asset portfolios to maximize profitability. Additionally, Annaly Capital Management predominantly deals with agency securities in its $80.9 billion portfolio. An "agency" asset is backed by the federal government in the event that the underlying instrument (in this case, mortgage-backed securities (MBS)) were to default. While this added protection pushes down the yields Annaly nets on the MBSs it buys, it also opens the door to the use of leverage to pump up its profitability. With yield-curve inversions lessening, the Fed no longer involved in MBS purchases, and mortgage REITs historically performing their best when interest rates are declining, the table is set for Annaly Capital Management's net interest margin and book value to climb. Realty Income: 5.56% yield A second ultra-high-yield dividend stock that makes for a no-brainer buy in April is top-tier retail REIT, Realty Income (NYSE: O). Realty Income, which doles out its dividend on a monthly basis, has increased its payout for 110 consecutive quarters. Though the prospect of a U.S. recession has weighed on retail stocks, Realty Income is ideally positioned to take advantage of the long-term growth of the U.S. economy. Its key advantage can be found in the composition of its commercial real estate (CRE) portfolio. It closed out 2024 with 15,621 CRE properties, approximately 91% of which are, per Realty Income, "resilient to economic downturns and/or isolated from e-commerce pressures." If investors dig into which companies and industries Realty Income leases to, they'll find that they're predominantly brand-name businesses in stand-alone locations that drive traffic to their stores in any economic climate. For example, even if the U.S. were to fall into a recession, consumers are still going to visit grocery stores, drug stores, dollar stores, convenience stores, and automotive service locations, all of which among the top industries by annualized contractual rent in Realty Income's CRE portfolio. Vetting and contract length matter, too. A very low percentage of the company's lessees fail to pay their rent, and most tend to lock in their rental agreements for long periods. There's little concern about frequent turnover, and the company's funds from operations is highly predictable. Realty Income is also historically inexpensive, relative to its future cash flow. Over the trailing-five-year period, shares have averaged a multiple to cash flow of roughly 16.2. But based on the consensus Wall Street forecast for 2026 cash flow, investors can pick up shares of Realty Income right now for 22% below this five-year average. Alliance Resource Partners: 10.26% yield The third no-brainer ultra-high-yield dividend stock to buy in April is coal producer Alliance Resource Partners (NASDAQ: ARLP). Yes, I did say "coal," and also yes, the company's yield of more than 10% has been sustainable. When this decade began, coal stocks were believed to be as good as dead. The push toward clean-energy solutions, such as solar and wind, were expected to meaningfully reduce demand for dirtier fuels. But when the COVID-19 pandemic struck, it tipped the scales back toward time-tested energy sources. Even though the spot price of coal is now well off of its pandemic high, Alliance Resource has enjoyed a resurgence in demand. Three factors allow this relatively little-known coal producer to stand out from its peers. First, management has done an excellent job of locking in volume and price commitments years in advance. Securing deals when the price of coal was higher than it is now will ensure consistent operating cash flow for years to come. It also leads to a level of cost and cash flow transparency that most mining-oriented companies lack. Secondly, the company's management team has historically taken a very conservative approach when expanding production. Even when the per-ton coal price rocketed higher during the pandemic, Alliance Resource Partners' management team edged production higher. While many peers have struggled under the weight of crippling debt, Alliance Resource ended 2024 with only $221.4 million in net debt. Its financial flexibility is superior to other coal producers. The third variable that makes Alliance Resource Partners special has been its foray into oil and natural gas royalties. Diversifying its operations into oil and gas allows the company to take advantage of pure increases in the spot price of two core energy commodities. At an estimated 8.5 times forward-year earnings, Alliance Resource Partners' stock remains a solid value amid a historically pricey market. Should you invest $1,000 in Annaly Capital Management right now? Before you buy stock in Annaly Capital Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Annaly Capital Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $675,119!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 1, 2025
