Annaly: Strong NII, Portfolio Growth, 105% Coverage

Annaly raised its quarterly dividend by 7.1% to $0.75 per share last month. The dividend is supported by robust net interest income and strong coverage. NLY beat Q2 EPS expectations with $0.79 distributable earnings, driven by tightening MBS spreads and 79% year-over-year net interest income growth. Shares trade at a 14% premium to book value, offering an attractive entry relative to peers like AGNC, especially for investors anticipating rate cuts medium-term. With a 105% dividend coverage ratio and a growing book value, NLY remains a compelling high-yield, rate-sensitive investment.

Annaly Capital Management (NLY) last month raised its dividend amount by ~7% to $0.75 per share quarterly amid strong net interest income growth from its mortgage-backed securities portfolio. This marked the second year in a row in