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Strong liquidity and a $1.5 billion share repurchase authorization support capital management.
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 14.74%.
NLY’s Dividend Yield
Image Source: Zacks Investment Research
The company maintained its quarterly cash dividend at 75 cents per share in September 2026, unchanged from June 2026. 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 program. 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 June 30, 2026, the company’s investment portfolio was worth $109.4 billion, of which $95 billion comprised Agency assets, $10.4 billion were Residential Credit investments and $4.1 billion were Mortgage Servicing Rights. Management continues to see opportunities across all three strategies and expects the platform’s scale, capital efficiency and flexibility to support risk-adjusted returns through market cycles.
In addition to its portfolio strength, Annaly Capital Management also maintains a solid liquidity position that supports portfolio growth and protects the balance sheet during periods of market stress. As of June 30, 2026, the company reported $9.6 billion in assets available for financing, including $5.5 billion in cash and unencumbered Agency mortgage-backed securities.
Given its diversified portfolio across Agency Mortgage-Backed Securities, solid liquidity position and disciplined capital management, Annaly appears positioned to support sustainable capital distributions and maintain its attractive dividend profile.
How NLY Stacks Up Against AGNC & STWD
Annaly’s peers, such as AGNC Investment Corp. (AGNC - Free Report) and Starwood Property Trust, Inc. (STWD - Free Report) , have also been focusing on maintaining shareholder returns through consistent dividend payouts.
AGNC Investment has a dividend yield of 15.2%. As of June 30, 2026, its liquidity, including unencumbered cash and Agency MBS, was $7.5 billion, supporting the sustainability of its dividend policy.
Meanwhile, Starwood Property has a dividend yield of 13.4%. However, its liquidity position remains comparatively weak. As of June 30, 2026, Starwood Property held cash and cash equivalents of $367.6 million and restricted cash of $272.8 million against debt of $23.7 billion. Such a narrow liquidity cushion relative to its debt obligations 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 0.7% against the industry’s 13.4% decline.
View the Zacks #1 Rank List
Image: Bigstock
Can Annaly Maintain Its Attractive Dividend and Capital Returns?
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 14.74%.
NLY’s Dividend Yield
Image Source: Zacks Investment Research
The company maintained its quarterly cash dividend at 75 cents per share in September 2026, unchanged from June 2026. 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 program. 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 June 30, 2026, the company’s investment portfolio was worth $109.4 billion, of which $95 billion comprised Agency assets, $10.4 billion were Residential Credit investments and $4.1 billion were Mortgage Servicing Rights. Management continues to see opportunities across all three strategies and expects the platform’s scale, capital efficiency and flexibility to support risk-adjusted returns through market cycles.
In addition to its portfolio strength, Annaly Capital Management also maintains a solid liquidity position that supports portfolio growth and protects the balance sheet during periods of market stress. As of June 30, 2026, the company reported $9.6 billion in assets available for financing, including $5.5 billion in cash and unencumbered Agency mortgage-backed securities.
Given its diversified portfolio across Agency Mortgage-Backed Securities, solid liquidity position and disciplined capital management, Annaly appears positioned to support sustainable capital distributions and maintain its attractive dividend profile.
How NLY Stacks Up Against AGNC & STWD
Annaly’s peers, such as AGNC Investment Corp. (AGNC - Free Report) and Starwood Property Trust, Inc. (STWD - Free Report) , have also been focusing on maintaining shareholder returns through consistent dividend payouts.
AGNC Investment has a dividend yield of 15.2%. As of June 30, 2026, its liquidity, including unencumbered cash and Agency MBS, was $7.5 billion, supporting the sustainability of its dividend policy.
Meanwhile, Starwood Property has a dividend yield of 13.4%. However, its liquidity position remains comparatively weak. As of June 30, 2026, Starwood Property held cash and cash equivalents of $367.6 million and restricted cash of $272.8 million against debt of $23.7 billion. Such a narrow liquidity cushion relative to its debt obligations 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 0.7% against the industry’s 13.4% decline.
NLY’s One-Year 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.