Should Investors Consider Investing in Annaly Capital Management, Inc.( NYSE: NLY) for High Dividend
Annaly Capital Management Inc (NYSE: NLY) is an American mortgage real estate investment trust. The company segments its operations into Residential and Commercial real estate investments. While Annaly’s Residential assets are primarily comprised of agency mortgage-backed securities and debentures, it is primarily invested in commercial mortgage loans and mortgage-backed securities in its Commercial unit through its subsidiary, Annaly Commercial Real Estate Group. Agency mortgage-backed securities and debentures make up the majority of the company’s overall portfolio. Most of the company’s counterparties are in the U.S. Annaly generates nearly all of its revenue from the spread between interest earned on its assets and interest payments made on its borrowings.
Highlights:
Mar 17, 2022, Annaly Capital Management, Inc. Announces 1st Quarter 2022 Common Stock Dividend of $0.22 per Share. This dividend is payable April 29, 2022, to common shareholders of record on March 31, 2022. The ex-dividend date is March 30, 2022.
Strong Q4 & annual 2022 Numbers:
- GAAP net income of $0.27 per average common share for the quarter; $1.60 per average common share for the full year 2021
- Economic return and tangible economic return of (2.4%) for the fourth quarter; economic return of (0.8%) and tangible economic return of 0.0% for the full year 2021
- Annualized GAAP return on average equity of 12.4% and annualized EAD return on average equity of 13.1%
- Book value per common share of $7.97
- Capital allocation to credit businesses increased from 22% to 32% throughout the
- Completed the $2.33 billion sale of Annaly’s Commercial Real Estate Business
Consistent Dividend History
Since inception, Annaly has delivered $21bn in dividends to shareholders. Average dividend Yield over last 20 years has been over 10%. Quick look below at price & dividend yield over last 20 years.
Quick Look at last 3 years Quarterly Dividend payout
Investors should note that Annaly Capital Management has a Forward P/E ratio of 7.37 right now. This represents a discount compared to its industry’s average Forward P/E of 8.6. Investors should also note any recent changes to analyst estimates for Annaly Capital Management. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Quick Look at company’s key Numbers
Stock Recommendation: Considering the consistent revenue & dividend payout, MarketFacts gives a “Buy” rating on the stock at the closing Price of $7.12 as of March 22nd, 2022.
| CMP (USD) (22nd March 2022) | $7.12 |
| Target Price (CAD) | $8.25 |
| Annual Dividend Yield | 11% |
| Recommendation | Buy |
