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One of the most closely tracked aspects of Annaly Capital Management’s (NLY - Free Report) financial profile is its dividend policy. As a publicly traded mortgage real estate investment trust (mREIT), the company is closely followed for its high dividend yield and steady income generation, which continue to attract income-focused investors.
REIT stocks generally attract strong interest from income-focused investors, given the U.S. requirement for REITs to distribute at least 90% of taxable income as dividends. Annaly currently offers a high dividend yield of around 12.59%.
Dividend Yield
Image Source: Zacks Investment Research
Last week, the company raised its quarterly cash dividend by 7.1% to 75 cents per share. The dividend will be paid out on July 31, 2026, to shareholders of record on June 30. Prior to this increase, in March 2025, it had boosted its dividend by 7.7% to 70 cents per share. Over the past five years, Annaly has increased its dividend twice and maintains a payout ratio of 95%, indicating that a substantial portion of earnings continues to be returned to shareholders.
Apart from dividends, NLY has a share repurchase plan in place. On Jan. 31, 2025, the company’s board of directors authorized a new common share repurchase program of up to $1.5 billion, which expires on Dec. 31, 2029. Although the company has not repurchased shares under the program since its announcement, the authorization provides management with flexibility to enhance shareholder value when market conditions are favorable.
A key driver supporting the sustainability of Annaly’s dividend is its disciplined investment strategy and strong portfolio composition. As of March 31, 2026, the company’s investment portfolio stood at $106.7 billion, of which $92.2 billion consisted of highly liquid Agency mortgage-backed securities (MBS). Given the government-backed nature of Agency MBS, these assets generally carry lower credit risk while supporting stable risk-adjusted returns in the fixed-income markets.
In addition to its portfolio strength, Annaly Capital Management also maintains a healthy liquidity position that enhances its ability to navigate market volatility. As of March 31, 2026, the company reported $9 billion in assets available for financing, including $5 billion in cash and unencumbered Agency mortgage-backed securities.
Given its strong liquidity position, sizable Agency MBS portfolio and disciplined capital management framework, Annaly appears well-positioned to sustain its capital distribution strategy and continue supporting its attractive dividend profile.
How NLY Stacks Up Against AGNC & ABR
Annaly’s peers, such as AGNC Investment Corp. (AGNC - Free Report) and Arbor Realty Trust, Inc. (ABR - Free Report) , have also been focusing on maintaining shareholder returns through consistent dividend payouts.
AGNC Investment has a dividend yield of 13.8%. As of March 31, 2026, its liquidity, including unencumbered cash and Agency MBS, was $7 billion, supporting the sustainability of its dividend policy.
Meanwhile, Arbor Realty has a dividend yield of 13.2%. However, its liquidity position remains comparatively weak. As of March 31, 2026, Arbor Realty held cash and cash equivalents of $407.1 million against long-term debt of $6.3 billion. Such a narrow liquidity cushion raises concerns about the sustainability of its dividend in the long term.
Annaly’s Price Performance & Zacks Rank
Over the past year, NLY shares have gained 16.9% compared with the industry’s growth of 3.4%.
View the Zacks #1 Rank List
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Is Annaly Well-Positioned to Support Its Capital Return Strategy?
Key Takeaways
One of the most closely tracked aspects of Annaly Capital Management’s (NLY - Free Report) financial profile is its dividend policy. As a publicly traded mortgage real estate investment trust (mREIT), the company is closely followed for its high dividend yield and steady income generation, which continue to attract income-focused investors.
REIT stocks generally attract strong interest from income-focused investors, given the U.S. requirement for REITs to distribute at least 90% of taxable income as dividends. Annaly currently offers a high dividend yield of around 12.59%.
Dividend Yield
Image Source: Zacks Investment Research
Last week, the company raised its quarterly cash dividend by 7.1% to 75 cents per share. The dividend will be paid out on July 31, 2026, to shareholders of record on June 30. Prior to this increase, in March 2025, it had boosted its dividend by 7.7% to 70 cents per share. Over the past five years, Annaly has increased its dividend twice and maintains a payout ratio of 95%, indicating that a substantial portion of earnings continues to be returned to shareholders.
Apart from dividends, NLY has a share repurchase plan in place. On Jan. 31, 2025, the company’s board of directors authorized a new common share repurchase program of up to $1.5 billion, which expires on Dec. 31, 2029. Although the company has not repurchased shares under the program since its announcement, the authorization provides management with flexibility to enhance shareholder value when market conditions are favorable.
A key driver supporting the sustainability of Annaly’s dividend is its disciplined investment strategy and strong portfolio composition. As of March 31, 2026, the company’s investment portfolio stood at $106.7 billion, of which $92.2 billion consisted of highly liquid Agency mortgage-backed securities (MBS). Given the government-backed nature of Agency MBS, these assets generally carry lower credit risk while supporting stable risk-adjusted returns in the fixed-income markets.
In addition to its portfolio strength, Annaly Capital Management also maintains a healthy liquidity position that enhances its ability to navigate market volatility. As of March 31, 2026, the company reported $9 billion in assets available for financing, including $5 billion in cash and unencumbered Agency mortgage-backed securities.
Given its strong liquidity position, sizable Agency MBS portfolio and disciplined capital management framework, Annaly appears well-positioned to sustain its capital distribution strategy and continue supporting its attractive dividend profile.
How NLY Stacks Up Against AGNC & ABR
Annaly’s peers, such as AGNC Investment Corp. (AGNC - Free Report) and Arbor Realty Trust, Inc. (ABR - Free Report) , have also been focusing on maintaining shareholder returns through consistent dividend payouts.
AGNC Investment has a dividend yield of 13.8%. As of March 31, 2026, its liquidity, including unencumbered cash and Agency MBS, was $7 billion, supporting the sustainability of its dividend policy.
Meanwhile, Arbor Realty has a dividend yield of 13.2%. However, its liquidity position remains comparatively weak. As of March 31, 2026, Arbor Realty held cash and cash equivalents of $407.1 million against long-term debt of $6.3 billion. Such a narrow liquidity cushion raises concerns about the sustainability of its dividend in the long term.
Annaly’s Price Performance & Zacks Rank
Over the past year, NLY shares have gained 16.9% compared with the industry’s growth of 3.4%.
Price Performance
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.