New York, June 13, 2026, 13:03 EDT
- Shares of Annaly last traded at $22.00, little changed late Friday. The mortgage REIT earlier lifted its quarterly dividend to $0.75.
- The bigger payout puts the annualized yield near 13.6% at $22.00. Annaly’s stock is trading above its last stated book value.
- The next thing traders are watching is the Federal Reserve’s June 16–17 policy meeting, which could move rate-sensitive mortgage REITs.
Annaly Capital Management, Inc. shares barely moved, last going for $22.00, down $0.02. Around 6.05 million shares traded hands. The iShares Mortgage Real Estate ETF added 0.27%. Vanguard Real Estate ETF was up 0.93%. Investors seemed to take in stride Annaly’s dividend update and watched for interest-rate news that could affect mortgage REITs.
The company’s board bumped up its second-quarter common stock dividend to $0.75 per share from $0.70, with payment set for July 31 to shareholders on record as of June 30. The ex-dividend date is also June 30. With shares last at $22.00, the new payout comes out to $3.00 a year, or about a 13.6% yield. CEO and Co-CIO David Finkelstein said the boost shows “the strong performance of Annaly’s diversified housing finance portfolio.” Annaly Capital Management
Annaly’s dividend is in focus. The mortgage REIT, which draws income-focused investors, posted first-quarter earnings available for distribution (EAD) of $0.76 a share, just ahead of its new $0.75 payout. The $0.76 EAD, a non-GAAP number investors watch to gauge if the dividend is sustainable, was slightly over the payout. Book value, or net asset value per share, was $19.82 as of March 31.
Book value matters for the stock. Investors often look at book value for mortgage REITs since their MBS portfolios swing fast with rates and spreads. Annaly is trading at roughly 1.11 times its March 31 book value at $22.00. That price puts the stock in high-yield income territory rather than making it stand out on asset value.
Bulls are pointing to the dividend hike as a sign Annaly feels confident. First-quarter EAD just covered the new payout, but coverage was slim. The company said it runs a broad platform: Agency MBS, residential credit, and mortgage servicing rights (MSRs)—the fees for managing mortgage loans. Annaly put its total portfolio at $106.7 billion, with $92.2 billion in Agency assets, which it called highly liquid. Residential Credit holdings increased 30% and MSR market value rose 9% for the quarter.
Annaly is still seen as vulnerable to swings in rates, funding costs and mortgage spreads. First-quarter GAAP leverage stood at 7.3 times, with economic leverage at 5.7 times. That leverage, using debt to ramp up exposure, can amplify moves in either direction. Risk factors flagged by the company include interest rate shifts, yield-curve changes, prepayment speeds, access to financing, asset values, credit issues and risks tied to MSRs.
The Federal Reserve’s June 16–17 meeting is the next big event for markets, with a policy decision coming at 2:00 p.m. EDT on June 17 and a press conference at 2:30 p.m. Rate moves are key for Annaly. Cheaper or stable funding helps its net interest spread—the difference between what Annaly earns on assets and its financing costs. Higher or jumpy rates hurt book value and complicate hedging. The 10-year Treasury was about 4.49% on June 12, keeping mortgage asset yields high.
Annaly is drawing income-seekers with its more than 13% yield, but the stock brings risk and does not stand out as a bargain. Analyst sentiment stays positive: MarketScreener lists 13 analysts at an “Outperform” mean, with an average target of $24.32, roughly 10.5% above the $22.00 last close. Still, shares trade at a premium to the March book value, EAD coverage over the new dividend is slim, leverage is high, and the stock tracks Fed policy moves closely. Those factors keep the picture mixed for buyers looking for yield. MarketScreener
