FBR Analyst: Annaly Capital Still an “Outperform,” but Wary of Possible Dividend Cut (NLY)

Filed in dividend, earnings, FBR Capital, Gold Investing, o, outperform, shares, target by on February 11, 2011 0 Comments

Analysts at FBR Capital on Friday passed along some interesting opinions regarding real estate-related investment manager Annaly Capital Management, Inc. ( NLY ) 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 Friday. The Bottom Line Shares of Annaly Capital ( NLY ) 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. ( NLY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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FBR Analyst: Annaly Capital Still an “Outperform,” but Wary of Possible Dividend Cut (NLY)

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