Annaly Capital Management (NYSE: NLY) is the flagship of mortgage REITs: a $106.7 billion portfolio, mostly agency MBS with residential credit and mortgage servicing alongside, run at institutional scale for one product, a double-digit yield paid from leveraged interest spread.
| Annaly Capital Management (NLY) Snapshot | |
|---|---|
| Share Price (delayed) | $22.53 -1.44% |
| Market Cap | $16.5B |
| Annualized Dividend | $2.85 (Quarterly) |
| Dividend Yield | 12.65% |
| AFFO Payout Ratio | 92% |
| Sector | Mortgage ยท Agency MBS |
Market data updates automatically several times daily. Last price refresh: Jul 13, 2026.
How the Machine Works
Annaly borrows short, buys government-guaranteed mortgage securities, and hedges the difference; the dividend is the spread times leverage. Q1 2026: earnings available for distribution of $0.76 per share against the $0.70 dividend (covered), book value of $19.82, economic leverage of 5.7x, and a net interest spread that widened dramatically as the Fed’s easing steepened the curve, the friendliest regime for agency mREITs in years. The dividend was raised from $0.65 to $0.70 in early 2025 and has held since.
Dividend Reality
Covered today with genuine spread earnings, and cut many times across history: Annaly’s dividend follows the rate cycle, full stop. Own it for the current regime’s math (EAD of $0.76 versus $0.70 paid), not for permanence. Our framework grades that honestly: strong current coverage, structurally cyclical payout.
The Honest Risk Section
Leverage on interest-rate risk: a curve flattening, a spread-widening shock (2020, 2022), or hedge slippage erodes book value fast, and book value is the stock. Total shareholder return over decades has been the yield minus book erosion; the current steep-curve window is the bull case and it is a window.
Frequently Asked Questions
Is Annaly’s dividend covered?
Yes currently: Q1 2026 EAD of $0.76 versus the $0.70 dividend, with full-year 2025 EPS of $2.92 against $2.80 paid. Coverage is cyclical by nature.
Why is NLY’s yield so high?
Roughly 6x economic leverage on mortgage spreads: the yield is compensation for book value volatility, not a free lunch.
Analysis based on Q1 2026 results (April 21, 2026, SEC filings). Live market data updates automatically. Independent research, not investment advice.
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