Why Annaly Capital Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT Annaly Capital Management has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Annaly and see what CAPS investors are saying about the stock right now.

Annaly facts

Headquarters (founded)

New York (1996)

Market Cap

$14.6 billion

Industry

Mortgage REITs

Trailing-12-Month Revenue

$2.2 billion

Management

Chairman/CEO Wellington Jamie Denahan-Norris (since 2012)
CFO Kathryn Fagan (since 1997)

Return on Equity (average, past 3 years)

8.9%

Dividend Yield

11.8%

Competitors

Capstead Mortgage
Impac Mortgage Holdings
Redwood Trust


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 2,573 members who have rated Annaly believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Truslunch, tapped Annaly as a particularly solid income opportunity:

Everyone is worried about an increase in rates and how it will reduce [Annaly's] margin, bring down the dividend, and the share price has reflected this. Nevermind doing the homework on the history of the company shows that a few years ago when rates were higher, margin was smaller ... and dividend yield was still in double digits. I'll take the reinvested dividends, which will offset the losses to share price and turn one dollar in to two dollars every 7 years or so.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Annaly may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.


Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Annaly Capital Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian D. Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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