At a glance
Annaly Capital Management Inc is worth $14.41B, about 6 times its fiscal 2025 earnings. It pays a 15.86% dividend yield, and returned $1.93B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −0.6% over the past year with dividends reinvested and +1.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 54.8% in the 2020 crash (S&P 500: 33.7%) and 47.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months and 28 months after the lows.
The business in plain English
Annaly Capital Management is a mortgage real estate investment trust (REIT), a company that must pay out most of its taxable income as dividends. It was founded in 1997 and is run by its own employees rather than an outside manager. It doesn't collect rent. Instead, it combines shareholders' money with borrowed money and invests in mortgage assets. It earns the spread: the gap between what those assets yield and what it pays to borrow and to hedge, or protect itself against interest rate swings.
Annaly has three investment groups. The Agency group invests in mortgage-backed securities. These are bonds backed by pools of home loans whose payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. As of December 31, 2025, Agency assets were 89% of the portfolio and 62% of capital. The Residential Credit group invests in home loans and securities without that guarantee, partly through a joint venture with the sovereign wealth fund GIC. It held 7% of the portfolio and 19% of capital. The Mortgage Servicing Rights group owns the right to collect and process borrowers' payments in exchange for a slice of the interest. It held 4% of the portfolio and 19% of capital.
Agency assets carry more borrowed money, so their share of capital is smaller than their share of the portfolio. The 10-K doesn't split revenue by segment.
Price history
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NLY -0.6% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was —, and net income was $-1.00B (-220.3%).
- For fiscal 2025, revenue was — (— year over year) with a null% net margin.
Financial health check
| Return on equity (FY2025) | 12.6% watch |
|---|---|
| Return on assets (FY2025) | 1.5% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | — | $-891.2M | — |
| FY2021 | — | $2.39B | — |
| FY2022 | — | $1.73B | — |
| FY2023 | — | $-1.64B | — |
| FY2024 | — | $1.00B | — |
| FY2025 | — | $2.03B | — |
Valuation snapshot
| Market value | $14.41B |
|---|---|
| P/E ratio | 6.3 |
| Dividend yield | 15.86% |
Rank among 1514 US companies
Market value at each year end
Annaly Capital Management’s market value went from $9.86B at the end of 2022 to $14.41B on Oct 28, 2026, up 46%; since the end of 2025 it is down 6%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $14.41B | -5.6% |
| 2025 | $15.27B | +48.9% |
| 2024 | $10.26B | +5.9% |
| 2023 | $9.69B | -1.8% |
| 2022 | $9.86B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NLY price data to Oct 28, 2026 | -9.2% | -0.6% | +23.0% | +1.2% | +1.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -9.2% |
| 2025 | +39.9% |
| 2024 | +7.9% |
| 2023 | +4.9% |
| 2022 | -21.2% |
| 2021 | +2.5% |
| 2020 | -0.8% |
| 2019 | -1.4% |
| 2018 | -14.5% |
| 2017 | +22.3% |
| 2016 | +9.7% |
| 2015 | -10.5% |
| 2014 | +11.4% |
| 2013 | -26.8% |
| 2012 | -9.2% |
| 2011 | -7.7% |
| 2010 | +7.3% |
| 2009 | +13.6% |
| 2008 | -9.8% |
| 2007 | +32.8% |
| 2006 | +28.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 11.7% over that stretch · deepest drop along the way 45.2%, back to its old high 31.8 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 54.4% over that stretch · deepest drop along the way 54.8%, back to its old high 13.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 40.8% over that stretch · deepest drop along the way 47.6%, back to its old high 28.3 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (23 read): 0 open-market purchases and 9 sales ($7.0M), 9 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 18, 2026 | David L Finkelstein CEO and Co-CIO, Director | sell (plan) | $1.2M |
| Aug 3, 2026 | David L Finkelstein CEO and Co-CIO, Director | sell (plan) | $1.1M |
| Apr 27, 2026 | David L Finkelstein CEO and Co-CIO, Director | sell (plan) | $1.1M |
| Nov 3, 2025 | David L Finkelstein CEO and Co-CIO, Director | sell (plan) | $1.1M |
| Feb 18, 2026 | Steven Francis Campbell President and COO | sell (plan) | $653K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 5.19% | Mar 31, 2026 |
| T. Rowe Price Associates, Inc. | 4.8% | Sep 30, 2025 |
ETFs with the most weight in NLY
| REM iShares Mortgage Real Estate ETF | 19.47% |
| MORT VanEck Mortgage REIT Income ETF | 15.54% |
| DVDN Kingsbarn Dividend Opportunity ETF | 7.66% |
| SRET Global X SuperDividend REIT ETF | 3.27% |
| KBWD Invesco KBW High Dividend Yield Financial ETF | 2.93% |
| HIPS GraniteShares HIPS US High Income ETF | 2.82% |
| RIET Hoya Capital High Dividend Yield ETF | 1.62% |
| HSMV First Trust Horizon Managed Volatility Small/Mid ETF | 1.41% |
What could go wrong
- Heavy borrowing magnifies losses. Annaly generally keeps economic leverage at or below 10:1, about $10 of borrowing for each $1 of equity. So a small drop in asset values can wipe out a large slice of shareholder equity.
- Margin calls and funding squeezes. Annaly borrows against its bonds, partly through repurchase agreements (short-term loans backed by collateral). If values fall, lenders can demand more cash (a margin call) or refuse to renew, forcing sales at poor prices.
- Rising rates hit book value and spreads. Higher interest rates lower the market value of Annaly's mortgage assets, and with it its book value (net worth). Borrowing costs can also rise faster than asset yields, which shrinks the spread it earns.
- Changes to Fannie Mae and Freddie Mac. Agency assets were 89% of the portfolio as of December 31, 2025. New laws or government actions that change how Fannie Mae and Freddie Mac relate to the federal government could disrupt its main business.
- Credit losses and servicing-rights swings. Home loans without an Agency guarantee can default, especially if home prices fall. Servicing rights lose value when loans are refinanced or paid off early. Both businesses face complex consumer-protection rules.
- No minimum dividend, and cuts have happened. Annaly has set no minimum dividend and may pay dividends in its own stock. It paid $3.52 a share in 2021 and 2022, then $2.60 in 2023. Losing REIT tax status would squeeze payouts.
Recent events
- Investor presentation or announcement
- Other company announcement
- Quarterly results released
- Change to shareholder rights; Bylaws or fiscal year changed
- Investor presentation or announcement; Other company announcement
- Investor presentation or announcement
- Other company announcement
- Quarterly results released
- Shareholder vote results
- Investor presentation or announcement
For income and retirement investors
Annaly's dividend is large but has not been steady. It paid $3.52 a share in fiscal 2021 and 2022, cut that to $2.60 in 2023 and 2024, then raised it to $2.80 in 2025. That is a one-year streak of increases. The $2.80 used up most of the $2.92 in diluted earnings per share, which left a thin cushion, and the 10-K sets no minimum dividend. The yield was 15.86% as of October 28, 2026. No share buybacks were recorded from fiscal 2021 through 2025. REIT dividends are usually taxed as ordinary income, not at the lower qualified-dividend rate.
Downturns have hit the stock hard. It fell 45.2% in the 2008 financial crisis and took about 32 months to recover. It dropped 54.8% in the 2020 COVID crash and took about 14 months to recover. It fell 47.6% in the 2022 bear market and did not recover until February 2025. Like any single stock, Annaly carries more risk than a diversified fund.
Questions investors ask
How does Annaly Capital Management make money?
Annaly makes money mostly from the spread between the interest its mortgage investments earn and what it pays to borrow and hedge. It combines shareholder money with borrowed money to pay for those assets. As of December 31, 2025, Agency mortgage-backed securities made up 89% of the portfolio. These are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Home loans and securities without that guarantee were 7%. Mortgage servicing rights were 4%. They pay Annaly a slice of borrowers' interest for handling their payments.
Has Annaly ever cut its dividend?
Yes. Annaly paid $3.52 a share in dividends in both 2021 and 2022. It cut the total to $2.60 in 2023 and kept it there in 2024, then raised it to $2.80 in 2025. The 10-K says the company has not set a minimum dividend and cannot promise future payments. Its reported profits also swing widely, with net losses in 2020 and 2023.
Why is Annaly's dividend yield so high?
Annaly's yield was 15.86% as of October 28, 2026, partly because of how the business is built. As a REIT, it must pay out most of its taxable income, and borrowing magnifies the income from its mortgage assets. A high yield also signals risk. The payout was cut in 2023, and the stock's largest peak-to-trough drop has been 71.7%. It returned about 1.6% a year over the 10 years to October 28, 2026.
How do interest rates affect Annaly stock?
Rising rates usually hurt Annaly. Higher rates lower the market value of its mortgage bonds, which cuts its book value (net worth). Borrowing costs can also climb faster than the interest its assets earn. Annaly uses hedging contracts, but they don't remove the risk, and Federal Reserve actions can also move its asset prices. Falling rates bring their own risk, because faster refinancing can shrink the value of servicing rights. In the 2022 bear market, the stock fell 47.6% and took about 28 months to recover.
Why do Annaly's earnings swing between profits and losses?
Mostly because of accounting. At a mortgage REIT, gains and losses in the value of bonds and hedges can flow straight into reported profit. The 10-K says Annaly's accounting produces results that change a lot from period to period. Annaly earned $2.03 billion in fiscal 2025, after losing $1.64 billion in 2023 and $891 million in 2020. For the quarter ended September 30, 2026, it reported a net loss of about $1.0 billion. The 10-K warns that results under standard accounting rules (GAAP) may not reflect the taxable income behind dividends.