Annaly Capital Management Is Cutting Its Dividend. Is This Just the Beginning?
Mortgage real estate investment trust (mREIT) Annaly Capital Management (NYSE: NLY) announced on its recent earnings call that it plans to cut its dividend, which currently has an eye-popping yield of roughly 16%. Management said they expect to bring the dividend down to a more "sustainable yield" of 11% to 12%.
While some may not have seen it coming, I think many investors questioned the high yield, particularly given soaring interest rates made the environment very difficult for mREITs. But is the upcoming dividend cut just the beginning? Will there be more to come?
Annaly is largely in the business of investing in government-guaranteed mortgage-backed securities (MBS), which are filled with pools of mortgage loans. Annaly also invests in other residential credit products and mortgage servicing rights.
Source Fool.com
