NLY - Annaly Capital's 14.2% Yield Is Still A Buy Here's Why
2024-02-19 01:35:35 ET
Summary
- Annaly Capital Management reported better-than-expected quarterly earnings, with a 7% increase in book value.
- The mortgage trust is expected to benefit from the central bank's shift in interest policy, which will lower funding costs and boost net interest spread.
- Despite a minor stock selloff due to higher-than-expected inflation, Annaly Capital Management's dividend is well-covered, and the stock is selling at a discount to book value.
It was the turn of Annaly Capital Management, Inc. ( NLY ) last Wednesday to report quarterly earnings for 4Q, and they were better-than-expected.
The mortgage real estate investment trust was able to grow its book value by 7% QoQ and the outlook for the mortgage trust 2024 is generally positive, I would say. The central bank’s shift in interest policy is set to bring down Annaly Capital Management’s funding costs, which should provide a boost to the trust’s net interest spread in 2024....
Annaly Capital's 14.2% Yield Is Still A Buy, Here's Why