Annaly Capital ManagementNYSE: NLY

Annaly Capital preferreds offer near double-digit yields and stable equity coverage, making them attractive even in a Fed-cutting environment. We take a look at the NLY preferreds trio in the context of the latest earnings release. NLY's modest leverage and common share issuance support preferreds, with NLY.PR.I as our pick for better yield and lower redemption risk.

Investors need to pay close attention to Annaly Capital (NLY) stock based on the movements in the options market lately.

Annaly Capital Management is well-positioned to benefit from the Fed's recent 50 bps rate cut, enhancing its net interest margins and book value growth. The mortgage REIT covered its dividend with distributable earnings in 3Q24, maintaining a robust pay-out ratio despite a slight deterioration in dividend metrics. Annaly's stock trades at a slight 2% premium to book value, with potential for further valuation expansion as interest rates continue to fall.

The mortgage REIT is seeing tailwinds in its business.

Annaly Capital Management barely makes enough money to cover its high-yielding dividend.

NLY's Q3 2024 earnings reflect a year-over-year decline in its BVPS. Yet, a rise in NII and average yield on interest-earning assets offers some support.

Annaly Capital Management (NLY) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.66 per share a year ago.

Annaly Capital Management, Inc. just released its third quarter earnings and missed Wall Street estimates. The release missed widely on GAAP earnings and slightly on earnings available for distribution, or EAD. This REIT has been cutting its dividend recently.

Investors will want to consider the following before picking up this ultra-high yield dividend stock.