Annaly Capital Management

NLY

Market cap $15.6B

Buying a home is often the largest expenditure that a person will make in their lifetime. Given the massive cost of a house, most people need to borrow money.

NLY jumps to a 52-week high on easing mortgage rates and strategic shifts, but what should investors make of the stock's next move? Lets' discuss.

Annaly Capital offers an attractive opportunity for income investors, driven by its high dividend yield and large Agency MBS portfolio. NLY stands to benefit from falling interest rates, which should boost agency MBS prices, book value, and support continued dividend payments. Current dividend coverage is strong at 104%, with a $0.70 quarterly payout and a yield just below 13%, making it appealing for yield-focused investors.

Annaly (NLY) reported earnings 30 days ago. What's next for the stock?

Jerome Powell is preparing a wonderful holiday income dish for us.

Judging by its FQ3 earnings report, I expect flat earnings growth ahead for Annaly Capital Management. Other risks include chronic book value per share (BVPS) erosion and significant equity dilution, both of which can pressure long-term valuation. To counterbalance these negatives, Annaly Capital Management stock now trades at a sizable discount, judging by two independent valuation methods.

Wall Street's 17.6% growth expectation for the S&P 500 is irrational. Market exuberance echoes the 1999 Dot-com Bubble. Consumers are bearish while valuations are near highs.

Annaly Capital is a mortgage REIT. The stock's dividend yield is roughly 10x that of the S&P 500 index.

Of 35 November Dividend Power Dogs, 12 are recommended for "safer" dividends, with free-cash-flow-yields exceeding dividend-yields, and returns from $1,000 invested equaling-or-exceeding share-price, making them ideal buys. Analyst forecasts project average net gains of 36.78% for the top ten DiviPower stocks by November 2026, with strong upside potential in select financials. Caution is advised for stocks with negative free cash flow margins, as 18 of 35 are considered cash-poor and riskier for dividend sustainability.

Annaly Capital is a mortgage real estate investment trust. The mREIT boasts a substantial dividend yield of almost 13%.