Analysis of Annaly Capital's Investment Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy NLY?
Source: Fool
- Total Return Performance: Since its IPO, Annaly Capital has outperformed the S&P 500 index, demonstrating its competitive edge in the market, particularly with its attractive 12.8% dividend yield that appeals to investors.
- Investment Structure Difference: As a mortgage real estate investment trust (REIT), Annaly Capital's portfolio resembles a mutual fund rather than a traditional property-owning REIT, indicating its focus on achieving high total returns rather than a stable stream of dividends.
- Dividend Volatility: Annaly's dividends have shown high volatility, historically experiencing dramatic increases and decreases, which has led to corresponding fluctuations in its stock price, prompting income-dependent investors to carefully consider their investment strategies.
- Future Dividend Outlook: Although the recent dividend increase may suggest an end to a series of cuts, the long-term perspective remains that Annaly is an unreliable dividend stock, making it more suitable for investors focused on total returns rather than consistent income generation.
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Analyst Views on NLY
Wall Street analysts forecast NLY stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 22.400
Low
21.50
Averages
23.09
High
25.00
Current: 22.400
Low
21.50
Averages
23.09
High
25.00
About NLY
Annaly Capital Management, Inc. is a diversified capital manager with investment strategies across mortgage finance. It owns a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations, credit risk transfer (CRT) securities, and other securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans and mortgage servicing rights. Its investment groups include Annaly Agency Group, Annaly Residential Credit Group, and Annaly Mortgage Servicing Rights Group. Annaly Agency Group invests in agency mortgage-backed securities collateralized by residential mortgages. Annaly Residential Credit Group invests in non-agency residential mortgage assets within residential and commercial markets. Annaly Mortgage Servicing Rights Group invests in MSR, which provides the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Annaly Capital's Investment Returns
- Total Return Performance: Since its IPO, Annaly Capital has outperformed the S&P 500 index, demonstrating its competitive edge in the market, particularly with its attractive 12.8% dividend yield that appeals to investors.
- Investment Structure Difference: As a mortgage real estate investment trust (REIT), Annaly Capital's portfolio resembles a mutual fund rather than a traditional property-owning REIT, indicating its focus on achieving high total returns rather than a stable stream of dividends.
- Dividend Volatility: Annaly's dividends have shown high volatility, historically experiencing dramatic increases and decreases, which has led to corresponding fluctuations in its stock price, prompting income-dependent investors to carefully consider their investment strategies.
- Future Dividend Outlook: Although the recent dividend increase may suggest an end to a series of cuts, the long-term perspective remains that Annaly is an unreliable dividend stock, making it more suitable for investors focused on total returns rather than consistent income generation.
See More
Annaly Capital's Dividend Increase and Associated Risks
- Dividend Growth Analysis: Annaly Capital recently increased its dividend, yet its dividend history indicates long-term risks, suggesting that the company's strategy focused on total returns may not be stable.
- Total Return Performance: Since its IPO, Annaly has outperformed the S&P 500 index, primarily due to its impressive 12.8% dividend yield, attracting income-seeking investors.
- Dividend Unreliability: Although the dividend yield is often high, Annaly's dividends are not reliable, with stock price fluctuations closely tied to dividend changes, making it unsuitable for investors relying on dividend income.
- Investment Strategy Recommendation: For investors seeking stable income, Annaly may not be the best choice, and investors should consider its total return potential rather than solely relying on dividend income.
See More
Analysis of Annaly Capital's Dividends and Returns
- Dividend Yield Advantage: Since its IPO, Annaly Capital has outperformed the S&P 500 index, primarily due to its impressive 12.8% dividend yield; however, this does not imply dividend stability, necessitating careful evaluation by investors.
- Non-Traditional REIT Structure: As a mortgage real estate investment trust, Annaly Capital resembles a mutual fund more than a traditional property-owning REIT, focusing on achieving high total returns rather than providing a reliable stream of dividends, which significantly impacts investment strategies.
- High Dividend Volatility: Annaly's dividend history exhibits significant volatility, with dramatic increases and decreases directly affecting its stock price, making it less suitable for investors who rely on dividend income for living expenses.
- Cautious Investment Advice: While the recent dividend increase may suggest an improvement, the long-term income stream from Annaly remains unreliable, making it more appropriate for investors focused on total returns rather than consistent income generation.
See More
ANNALY CAPITAL MANAGEMENT, INC. REVEALS SCHEDULE FOR FIRST QUARTER 2026 FINANCIAL RESULTS AND CONFERENCE CALL
- Announcement of Financial Results: Analytic Capital Management, Inc. has announced the dates for its first quarter 2026 financial results.
- Conference Call Details: The company will also hold a conference call to discuss these results, providing further insights to stakeholders.
See More
Onslow Bay Integrates MeridianLink to Enhance Loan Efficiency
- Efficiency Boost through Integration: Onslow Bay Financial LLC has officially launched MeridianLink® Mortgage, transitioning from a third-party vendor to an in-house loan origination system that significantly enhances visibility and flexibility across its non-delegated correspondent platform, which is expected to improve client engagement and streamline underwriting processes.
- End-to-End Control: The new platform empowers Onslow Bay to take full ownership of the loan process, reducing manual touchpoints and increasing workflow accuracy and consistency, thereby better serving its non-delegated correspondent partners and enhancing long-term operational performance.
- Market Expansion Potential: The sophisticated open API framework of MeridianLink Mortgage provides Onslow Bay with the flexibility to quickly scale business needs and integrate with over 400 partners, supporting the company's ongoing leadership in the non-agency market.
- Strategic Investment Returns: By adopting MeridianLink Mortgage, Onslow Bay gains not only cutting-edge technology but also the trusted expertise to drive business growth, further enhancing its liquidity and competitiveness in the U.S. housing market.
See More
Analysis of High-Yield REIT Investment Opportunities
- Healthpeak Properties: Healthpeak Properties currently offers a dividend yield of 7.3%, and its diversified healthcare portfolio generates stable cash flows that enable the payment of high monthly dividends, while the company is undergoing a major portfolio upgrade to unlock existing property value and seize new investment opportunities.
- Annaly Capital Management: Annaly Capital Management boasts a dividend yield of 13.2%, leveraging its nearly $105 billion investment portfolio in mortgages, and despite facing risks during challenging market conditions, its improved earnings have allowed for dividend increases over the past few quarters.
- Vici Properties: Vici Properties focuses on experiential properties with a current dividend yield of 6.6%, and its long-term leases tied to inflation ensure tenants cover all operating costs, while recent acquisitions of hotels and casinos will further support dividend growth.
- Investment Appeal: The high dividend yields offered by Healthpeak, Annaly, and Vici make them ideal choices for investors seeking a reliable income stream, particularly in today's low-yield environment, showcasing their strong attractiveness.
See More
Analysis of Annaly Capital's Investment Returns
- Total Return Performance: Since its IPO, Annaly Capital has outperformed the S&P 500 index, demonstrating its competitive edge in the market, particularly with its attractive 12.8% dividend yield that appeals to investors.
- Investment Structure Difference: As a mortgage real estate investment trust (REIT), Annaly Capital's portfolio resembles a mutual fund rather than a traditional property-owning REIT, indicating its focus on achieving high total returns rather than a stable stream of dividends.
- Dividend Volatility: Annaly's dividends have shown high volatility, historically experiencing dramatic increases and decreases, which has led to corresponding fluctuations in its stock price, prompting income-dependent investors to carefully consider their investment strategies.
- Future Dividend Outlook: Although the recent dividend increase may suggest an end to a series of cuts, the long-term perspective remains that Annaly is an unreliable dividend stock, making it more suitable for investors focused on total returns rather than consistent income generation.
See More
Annaly Capital's Dividend Increase and Associated Risks
- Dividend Growth Analysis: Annaly Capital recently increased its dividend, yet its dividend history indicates long-term risks, suggesting that the company's strategy focused on total returns may not be stable.
- Total Return Performance: Since its IPO, Annaly has outperformed the S&P 500 index, primarily due to its impressive 12.8% dividend yield, attracting income-seeking investors.
- Dividend Unreliability: Although the dividend yield is often high, Annaly's dividends are not reliable, with stock price fluctuations closely tied to dividend changes, making it unsuitable for investors relying on dividend income.
- Investment Strategy Recommendation: For investors seeking stable income, Annaly may not be the best choice, and investors should consider its total return potential rather than solely relying on dividend income.
See More
Analysis of Annaly Capital's Dividends and Returns
- Dividend Yield Advantage: Since its IPO, Annaly Capital has outperformed the S&P 500 index, primarily due to its impressive 12.8% dividend yield; however, this does not imply dividend stability, necessitating careful evaluation by investors.
- Non-Traditional REIT Structure: As a mortgage real estate investment trust, Annaly Capital resembles a mutual fund more than a traditional property-owning REIT, focusing on achieving high total returns rather than providing a reliable stream of dividends, which significantly impacts investment strategies.
- High Dividend Volatility: Annaly's dividend history exhibits significant volatility, with dramatic increases and decreases directly affecting its stock price, making it less suitable for investors who rely on dividend income for living expenses.
- Cautious Investment Advice: While the recent dividend increase may suggest an improvement, the long-term income stream from Annaly remains unreliable, making it more appropriate for investors focused on total returns rather than consistent income generation.
See More
ANNALY CAPITAL MANAGEMENT, INC. REVEALS SCHEDULE FOR FIRST QUARTER 2026 FINANCIAL RESULTS AND CONFERENCE CALL
- Announcement of Financial Results: Analytic Capital Management, Inc. has announced the dates for its first quarter 2026 financial results.
- Conference Call Details: The company will also hold a conference call to discuss these results, providing further insights to stakeholders.
See More
Onslow Bay Integrates MeridianLink to Enhance Loan Efficiency
- Efficiency Boost through Integration: Onslow Bay Financial LLC has officially launched MeridianLink® Mortgage, transitioning from a third-party vendor to an in-house loan origination system that significantly enhances visibility and flexibility across its non-delegated correspondent platform, which is expected to improve client engagement and streamline underwriting processes.
- End-to-End Control: The new platform empowers Onslow Bay to take full ownership of the loan process, reducing manual touchpoints and increasing workflow accuracy and consistency, thereby better serving its non-delegated correspondent partners and enhancing long-term operational performance.
- Market Expansion Potential: The sophisticated open API framework of MeridianLink Mortgage provides Onslow Bay with the flexibility to quickly scale business needs and integrate with over 400 partners, supporting the company's ongoing leadership in the non-agency market.
- Strategic Investment Returns: By adopting MeridianLink Mortgage, Onslow Bay gains not only cutting-edge technology but also the trusted expertise to drive business growth, further enhancing its liquidity and competitiveness in the U.S. housing market.
See More
Analysis of High-Yield REIT Investment Opportunities
- Healthpeak Properties: Healthpeak Properties currently offers a dividend yield of 7.3%, and its diversified healthcare portfolio generates stable cash flows that enable the payment of high monthly dividends, while the company is undergoing a major portfolio upgrade to unlock existing property value and seize new investment opportunities.
- Annaly Capital Management: Annaly Capital Management boasts a dividend yield of 13.2%, leveraging its nearly $105 billion investment portfolio in mortgages, and despite facing risks during challenging market conditions, its improved earnings have allowed for dividend increases over the past few quarters.
- Vici Properties: Vici Properties focuses on experiential properties with a current dividend yield of 6.6%, and its long-term leases tied to inflation ensure tenants cover all operating costs, while recent acquisitions of hotels and casinos will further support dividend growth.
- Investment Appeal: The high dividend yields offered by Healthpeak, Annaly, and Vici make them ideal choices for investors seeking a reliable income stream, particularly in today's low-yield environment, showcasing their strong attractiveness.
See More
