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Annaly Capital Management Inc, known by the ticker symbol NLY,  is a large-cap Mortgage Real Estate Investment Trust, operating in the real estate business sector. This is my first report on Annaly Capital Management Inc for this Viital portfolio or any of my previous six portfolios.

Annaly Capital Management Inc is an American mortgage real estate investment trust. 

The company segments its operations into Residential and Commercial real estate investments. 

While Annaly's Residential assets are primarily comprised of agency mortgage-backed securities and debentures, it is primarily invested in commercial mortgage loans and mortgage-backed securities in its Commercial unit through its subsidiary, Annaly Commercial Real Estate Group. 

Agency mortgage-backed securities and debentures make up the majority of the company's overall portfolio. Most of the company's counterparties are located in the U.S. Annaly generates nearly all of its revenue from the spread between interest earned on its assets and interest payments made on its borrowings.

The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. 

The company was founded in 1996 and is based in New York, New York.

Three key data points gauge any dividend equity or fund such as Annaly Capital Management Inc (NLY):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

NLY Price

NLY's price per share was $7.44 as of yesterday's market close. One year ago its price was $8.72. Therefore, NLY's share price fell $1.28 or 14.7% in the past year. 

If NLY's stock trades in the range of $6.50 to $10.00 this next year, its recent $7.44 share price might rise by $0.31 to reach $7.75 by March 30, 2023. My $0.31 estimate is  $0.03 greater than the median of target price estimates from nine analysts covering NLY for various brokerages. 

NLY Dividends 

Annaly Capital Management Inc's most recent quarterly dividend of $0.22 will be  paid  April 29 to shareholders on record as of March 30th.  Assuming the same rate holds true for the coming months, the resulting annual dividend payout per share of $0.88 yields 11.83% at yesterday's $7.44 closing price. 

NLY has paid variable quarterly payouts since July 27, 1998. That stretch marks 24 years come July. 

NLY Returns

Adding the $0.88 NLY Capital Management annual dividend to the estimated one-year price upside of $0.31 shows a $1.19 potential gross gain, per share, to be reduced by any costs to trade NLY shares.  

At yesterday's $7.44 price per share, a little under $1000 would buy 134 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $1.19 gross gain estimate per share results in a net gain of $1.12 X 134 shares = $150.08 for a 15.1% net gain on a $996.96 investment.

So it is that Annaly Capital Management   Inc (NLY): shows a possible 15.1% net gain including a 11.83% forward looking dividend yield. 

Over the next year at this time our $1000 investment in  Annaly Capital Management Inc (NLY) could generate $118.30 in cash dividends alone. Note that a single share of NLY stock bought at yesterday's single share price of $7.44 is about 1/16 of the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now maybe the time to buy  Annaly Capital Management Inc (NLY) shares. The estimated next-year dividend from $1K invested is 15.9 times greater than yesterday's single share price. Consider yourself alerted. Its a sign!   

All of the estimates above are speculation based on the past history of Annaly Capital Management Inc (NLY). Only time and money invested in this stock will determine its market value.