Latest news with #AnnalyCapitalManagement
Yahoo
a day ago
- Business
- Yahoo
Annaly Capital Management (NLY) Suffers a Larger Drop Than the General Market: Key Insights
In the latest close session, Annaly Capital Management (NLY) was down 1.54% at $19.18. The stock's change was less than the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.79%, while the tech-heavy Nasdaq lost 1.3%. Coming into today, shares of the real estate investment trust had lost 1.17% in the past month. In that same time, the Finance sector gained 1.24%, while the S&P 500 gained 3.55%. Market participants will be closely following the financial results of Annaly Capital Management in its upcoming release. The company's earnings per share (EPS) are projected to be $0.71, reflecting a 4.41% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $411 million, indicating a 667.36% growth compared to the corresponding quarter of the prior year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.87 per share and revenue of $1.47 billion, indicating changes of +6.3% and +492.83%, respectively, compared to the previous year. Any recent changes to analyst estimates for Annaly Capital Management should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Annaly Capital Management currently has a Zacks Rank of #3 (Hold). With respect to valuation, Annaly Capital Management is currently being traded at a Forward P/E ratio of 6.78. This denotes a discount relative to the industry average Forward P/E of 8.48. Investors should also note that NLY has a PEG ratio of 4.29 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices. The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on 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 Annaly Capital Management Inc (NLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
These Monster Dividend Stocks Can Turn $1,000 Into Over $100 in Passive Income Each Year
AGNC Investment's strategy earns high returns to pay its lucrative monthly dividend. Annaly Capital Management recently raised its prodigious payout. Delek Logistics Holdings has increased its monster income stream for 49 straight quarters. 10 stocks we like better than AGNC Investment Corp. › Many companies pay dividends. However, some companies pay monster dividends. That's due to a combination of their structure and business model. AGNC Investment (NASDAQ: AGNC), Annaly Capital Management (NYSE: NLY), and Delek Logistics Partners (NYSE: DKL) are monster dividend stocks, boasting yields above 10%. They could turn a $1,000 investment into over $100 of annual passive income at that rate. Here's a closer look at these big-time dividend stocks. AGNC Investment provides its investors with a prodigious passive income stream. The mortgage-focused real estate investment trust (REIT) currently has a more than 16% dividend yield. That's over 10 times higher than the S&P 500's dividend yield of less than 1.5%. As a REIT, AGNC Investment needs to pay out at least 90% of its taxable net income in dividends, which is a big factor driving its monster yield. The company's business model also plays a role in its outsize yield. It invests in mortgage-backed securities (MBSes) backed by government agencies (e.g., Fannie Mae) on a leveraged basis. Leverage can boost returns. For example, the company's CEO noted on its first-quarter earnings conference call that it can earn a return in the low 20% range by leveraging its portfolio in the current environment. That enables it to earn more than enough income to cover its operating expenses and monthly dividend payments. However, leverage can drag down returns when market conditions deteriorate. That has happened in the past, causing the REIT to cut its dividend quite a few times over the years. Annaly Capital Management is also a mortgage REIT. Like AGNC, it invests in Agency MBS, which makes up the bulk of its investment portfolio. It also invests in non-agency residential mortgages like jumbo loans and mortgage servicing rights (MSRs). Residential credit investments have higher risk profiles and return potential, while MSRs are lower leveraged and less risky investments. The REIT currently has a dividend yield approaching 15%. It recently gave investors a surprise dividend increase. It could afford to boost its payout because its earnings have improved. If that upward trajectory continues, Annaly could increase its payment again. However, the opposite is also true. The REIT has had to cut its dividend payment several times in the past because of a decline in its earnings. That makes it a higher-risk, higher-reward income stock like AGNC. Delek Logistics Partners is a master limited partnership (MLP). MLPs are pass-through entities that typically distribute much of their income to investors and consequently send their investors a Schedule K-1 Federal Tax Form each year. Delek Logistics Partners currently provides its investors with a prodigious income stream that yields nearly 10.5%, the highest in the energy midstream sector. The MLP stands out from the two REITs on this list because it has steadily increased its distribution. It has raised its payout for 49 straight quarters and grown it by 3.7% over the past year. The MLP's business model generates relatively stable cash flow backed by long-term contracts with its parent company, refiner Delek US Holdings, and third-party customers. It has been steadily reducing its reliance on Delek by growing its earnings from outside clients, from 41% in 2023 to 80% this year. Delek Logistics Partners grows its earnings by investing in expansion projects and making acquisitions. It recently closed its Gravity Water Midstream acquisition and started its Libby 2 processing plant. The MLP's growth-related investments help support its steadily rising distribution. It has a decent amount of financial flexibility, which should fuel its continued expansion. AGNC Investment, Annaly Capital Management, and Delek Logistics Partners have yields above 10%. That makes them very lucrative investments for generating passive income. However, higher risk profiles come with higher yields, evidenced by the prior payout cuts by AGNC and Annaly. Still, they're enticing options for investors seeking the potential of earning an outsize income stream and are comfortable with the possible risks of a future payout cut. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy. These Monster Dividend Stocks Can Turn $1,000 Into Over $100 in Passive Income Each Year was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Is Abacus Life, Inc. (ABL) Outperforming Other Finance Stocks This Year?
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Abacus Life, Inc. (ABL) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Abacus Life, Inc. is a member of the Finance sector. This group includes 858 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Abacus Life, Inc. is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for ABL's full-year earnings has moved 2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, ABL has gained about 11.1% so far this year. Meanwhile, stocks in the Finance group have gained about 4.6% on average. As we can see, Abacus Life, Inc. is performing better than its sector in the calendar year. Annaly Capital Management (NLY) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6.5%. The consensus estimate for Annaly Capital Management's current year EPS has increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, Abacus Life, Inc. belongs to the Insurance - Life Insurance industry, a group that includes 16 individual stocks and currently sits at #75 in the Zacks Industry Rank. This group has gained an average of 1.6% so far this year, so ABL is performing better in this area. Annaly Capital Management, however, belongs to the REIT and Equity Trust industry. Currently, this 33-stock industry is ranked #155. The industry has moved -2.7% so far this year. Investors interested in the Finance sector may want to keep a close eye on Abacus Life, Inc. and Annaly Capital Management as they attempt to continue their solid performance. 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 Abacus Life, Inc. (ABL) : 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
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
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
