Analysts at FBR Capital on Friday passed along some interesting
opinions regarding real estate-related investment manager Annaly
Capital Management, Inc. (
) on Friday.
Although the firm maintained its "Outperform" rating and $20
price target on NLY, it noted a dividend cut could be in the works
for the company.
An FBR analyst commented, "We reiterate our rating and price
target on NLY shares despite last week's weaker-than-expected 4Q10
earnings results. While the results give us pause as to the
viability of the current dividend, we believe that shares remain
attractive from a long-term, risk-adjusted total return
perspective. With a historically steep yield curve, the FOMC
estimated to be on hold for at least another year, and declining
prepayment speeds, we continue to believe that the operating
environment is set up for NLY to deliver mid-to-high teen ROEs, and
likewise dividend yields, for the foreseeable future."
Annaly Capital shares were mostly flat in premarket trading
The Bottom Line
Shares of Annaly Capital (
) have a 14.29% dividend yield, based on last night's closing stock
price of $17.92. The stock has technical support in the $15-$17
price area. If the shares can firm up, we see overhead resistance
around the $20 price level.
Annaly Capital Management, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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