Annaly Capital Management Company Profile and Investment Strategy

Annaly Capital Management is a leading mortgage real estate investment trust (REIT) that focuses on investing in agency mortgage-backed securities (MBS).

The company was founded in 1997 by Michael Calhoun and has since grown to become one of the largest mortgage REITs in the US.

Annaly Capital Management is headquartered in New York City and is listed on the New York Stock Exchange (NYSE) under the ticker symbol NLY.

Annaly Capital Management's investment strategy is centered around investing in agency MBS, which are securities backed by government-sponsored entities such as Fannie Mae and Freddie Mac.

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Annaly Capital Management's financials are closely tied to the stock market and equities. The company's stock, NLY Stock, is a key indicator of its financial performance.

Annaly Capital Management is a company that operates in the stock market and equities sector. Its stock, NLY Stock, is a publicly traded security.

The company's financial performance is reflected in its income statement, which provides a snapshot of its revenues and expenses.

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Sales by Activity can give us a clear picture of how a company is performing financially. Annaly Capital Management, Inc. has seen significant fluctuations in their sales over the years.

In 2020, they reported a substantial increase in sales from mortgage-backed securities, reaching $1.22 billion. This is a notable jump from their 2019 sales of -$453 million.

Their sales continued to grow in 2021, reaching $4.11 billion. However, in 2022, they dropped to $2 billion.

Annaly Capital Management is a mortgage real estate investment trust (REIT) that focuses on investing in agency mortgage-backed securities.

Its investment strategy is to generate income through the interest on these securities, which are backed by government-sponsored entities such as Fannie Mae and Freddie Mac.

Annaly Capital Management has a significant portfolio of mortgage-backed securities, with a total of $93 billion in assets as of 2020.

This large portfolio is a key factor in the company's ability to generate consistent returns for its shareholders.

Annaly Capital Management has a dividend yield of around 12%, which is significantly higher than the average dividend yield of other REITs.

This high dividend yield is a major draw for investors looking for income-generating investments.

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Annaly Capital Management's investment strategy focuses on acquiring and financing agency and non-agency mortgage-backed securities.

The company's main goal is to generate regular income for its shareholders through dividend payments.

Annaly Capital Management has a significant portfolio of mortgage-backed securities, with a total value of over $80 billion.

The company's investment strategy is designed to be stable and predictable, with a focus on long-term growth.

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As we explore the investment strategy of Annaly Capital Management, Inc., let's take a closer look at the board members who help shape the company's direction.

Michael Haylon serves as the Chairman, a position he has held since an unspecified date.

John Schaefer has been a Director/Board Member since 2013-03-17, bringing his experience to the table for nearly a decade.

Glenn Votek joined the board in 2019-11-20, bringing his expertise to the table.

David Finkelstein, at 52 years old, is one of the younger board members, having joined in 2020-03-12.

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Vicki Williams and Eric Reeves are also 52 years old, with Vicki joining in 2017-12-31 and Eric in 2021-03-18.

Francine Bovich and John Schaefer are both 73 years old, with Francine joining in 2013-12-31 and John in 2013-03-17.

Kathy Hannan, at 63 years old, has been a Director/Board Member since 2019-02-12.

Thomas Hamilton, the current Chairman, is 57 years old and has been with the company since 2019-11-20.

Martin Laguerre, the youngest board member at 51 years old, joined in 2023-03-12.

Here is a list of the board members, including their title and age:

Analysts' Recommendations are a crucial aspect of investment strategy. RBC Capital Markets has a strong track record of recommending Annaly Capital Management, Inc. with an Outperform rating and a price target of $22.

RBC has consistently shown confidence in the company's growth potential. In January 2023, they boosted the price target to $24 from $20, maintaining the Outperform rating.

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UBS, on the other hand, has had a more mixed record. They downgraded Annaly Capital Management to Neutral from Buy in December 2023, adjusting the price target to $19 from $24. However, in September 2023, they upgraded the company to Buy from Neutral, raising the price target to $24 from $21.

Other analysts, such as Argus, Wells Fargo Securities, and Keefe, Bruyette & Woods, have also provided recommendations. Argus downgraded Annaly Capital Management to Hold from Buy in February 2023, while Wells Fargo Securities upgraded the company to Overweight from Equalweight in September 2020, adjusting the price target to $23 from $19.

Here are some key analyst recommendations for Annaly Capital Management, Inc.:

These recommendations demonstrate the varying opinions of analysts regarding Annaly Capital Management's growth potential. It's essential to consider multiple perspectives when making investment decisions.

Annaly Capital Management is a real estate investment trust (REIT) that offers a unique investment opportunity for income-seeking investors. It has a long history of paying consistent dividends.

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The company's focus on agency mortgage-backed securities (MBS) allows it to generate a significant portion of its income from interest payments. This has enabled Annaly to maintain a high dividend payout ratio.

Annaly's dividend yield is typically higher than that of other REITs, making it an attractive option for investors seeking regular income.

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Investing in companies with high dividend yields can be a costly mistake if you don't consider the sustainability of those payouts. I've learned this the hard way, having invested in companies that eventually cut their dividend payments.

High-yielding stocks can be tempting, but they often come with a higher risk of dividend cuts. In Annaly's case, the company cut its payout several times over the years.

A key factor in determining a company's ability to sustain its dividend is its stable and growing earnings. Annaly, however, has faced earnings headwinds from changes in interest rates.

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A company with a high dividend payout ratio (above 75%) is more likely to struggle to maintain its dividend. Annaly's high payout ratio forced it to issue new stock, weighing on its share price.

To avoid similar mistakes, look for companies with a strong balance sheet, such as an investment-grade credit rating and a conservative leverage ratio. Annaly's lower leverage was not enough to save its dividend.

Here are the three key factors to help drive a company's ability to sustain its dividend:

Preferred dividends are a type of dividend that corporations can pay to preferred shareholders.

Preferred dividends are typically paid before common stock dividends.

In the US, the tax treatment of preferred dividends is different from common stock dividends.

Preferred dividends are usually not eligible for the qualified dividend tax rate.

Investors who own preferred stock often have a higher claim on assets than common stockholders in the event of bankruptcy.

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Annaly Capital Management has several subsidiaries that play a crucial role in its operations. One of these subsidiaries is Annaly Credit Opportunities Management LLC, which provides investment management services and is based in New York, NY.

Annaly Credit Opportunities Management LLC is part of Annaly Capital Management, Inc. and operates within the Financial Conglomerates category. Another subsidiary is Arcola Securities, Inc., which is a self-clearing broker/dealer founded in 2008. It's worth noting that Arcola Securities, Inc. is a wholly-owned subsidiary of Annaly Capital Management, Inc.

Arcola Securities, Inc. operates a matched book repo business, financing primarily U.S. Agency mortgage-backed securities and U.S. Treasury securities. The firm is a member of FINRA and the SIPC, and it engages in various activities such as fixed-income sales and trading, private placements, and securities lending.

Here's a list of some of the notable subsidiaries of Annaly Capital Management:

These subsidiaries are essential to Annaly Capital Management's success, and they contribute to the company's overall mission and goals.