Annaly Capital Management Inc. (NLY) Stock Price & How to Invest
Last updated July 2026
Short answer
NLY (Annaly Capital Management) is a large agency mortgage REIT that borrows short, buys a $100B-plus book of mostly government-backed mortgage securities, and passes the net interest spread through to shareholders as a high dividend, so it trades more like a leveraged bond fund than a growth stock.
NLY stock price
As of 2026-07-10, Annaly Capital Management Inc. (NLY) last closed at $22.86, up 15.9% over the past year. Over the past 52 weeks it has traded between $19.47 and $24.40.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Annaly Capital Management Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Annaly Capital Management Inc. (NLY) do?
Annaly Capital Management is one of the largest and oldest mortgage real estate investment trusts (mREITs) in the United States. It runs a roughly $107 billion investment portfolio, the bulk of which (about $92 billion as of Q1 2026) sits in highly liquid agency mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae, complemented by growing residential credit and mortgage servicing rights (MSR) sleeves. The business model is essentially a leveraged carry trade: Annaly funds long-dated mortgage assets with short-term repo borrowings, earns the spread between the two, hedges interest-rate exposure with swaps and other instruments, and distributes the profit as dividends under REIT rules.
Because almost all of its assets are government-backed, credit risk is low, but the trade-off is heavy sensitivity to interest rates, the shape of the yield curve, prepayment speeds and mortgage spreads. Book value per share can swing meaningfully quarter to quarter as bond prices move, and the stock's total return is driven far more by that book value plus the dividend than by earnings growth. As of July 2026 the shares trade around $22-23 with a market cap near $16 billion and a dividend yield in the low-teens percent, making NLY a vehicle income investors buy for yield rather than capital appreciation.
What's driving Annaly Capital Management Inc. (NLY)?
1. Wide net interest spread and covered dividend
In Q1 2026 Annaly reported earnings available for distribution (EAD) of ~$0.76 per share against a ~$0.70 dividend, and it then raised the Q2 payout ~7% to ~$0.75. A net interest spread around 1.42% and net interest margin near 1.71% mean the carry currently more than covers the distribution, which is the single most important support for the stock's income thesis.
2. Diversification into residential credit and MSR
Management has been steering more capital into residential credit (non-agency whole loans and securitizations) and mortgage servicing rights alongside the core agency book. MSR income tends to rise when rates rise and prepayments slow, giving Annaly a partial internal hedge and a more diversified earnings base than a pure agency portfolio.
3. Favorable agency MBS backdrop
Wider mortgage spreads and a steeper yield curve improve the economics of new agency MBS purchases, and reduced bank and Federal Reserve demand for the asset class has kept spreads attractive for levered buyers like Annaly. If rate volatility settles, agency MBS can generate steady spread income at scale.
4. Scale, liquidity and access to capital
As one of the largest mREITs, Annaly benefits from deep repo relationships, a highly liquid agency portfolio it can pledge or sell quickly, and consistent access to equity markets. That scale lets it manage leverage and liquidity through stress periods better than smaller peers.
What are the risks to Annaly Capital Management Inc. (NLY)?
The dominant risk is interest-rate and spread volatility: a sharp move in rates or a widening of mortgage spreads can cut book value per share quickly, as seen historically when the stock and dividend both fell. Annaly runs meaningful leverage funded with short-term repo, so a funding-market disruption or margin calls could force asset sales at bad prices. The dividend is not guaranteed and has been cut multiple times over the company's history when spreads compressed. Prepayment risk erodes the value of premium MBS when rates fall, while rising rates pressure book value; the position is difficult to win on both sides. Finally, the stock can trade at a premium or discount to book value, so investors face price risk on top of portfolio risk.
How is Annaly Capital Management Inc. (NLY) valued? (approximate, JULY 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Annaly Capital Management Inc.'s investor relations page or your broker.
- Market cap: ~$16 billion
- Book value per share (Q1 2026): ~$19.82
- Dividend yield: ~13%
- Quarterly dividend (Q2 2026): ~$0.75/share
- EAD per share (Q1 2026): ~$0.76
- Total investment portfolio: ~$106.7 billion
As of July 2026 NLY trades around $22-23 per share, a modest premium to its ~$19.82 Q1 2026 book value. Earnings available for distribution of ~$0.76 covered the dividend, and the net interest spread of ~1.42% (net interest margin ~1.71%) is the key metric to watch quarter to quarter. Trailing-twelve-month revenue was roughly $2.4 billion, but for a levered mortgage REIT book value per share and dividend coverage matter far more than a revenue multiple.
Who competes with Annaly Capital Management Inc. (NLY)?
Agency mortgage REITs
AGNC Investment (AGNC) is the closest direct peer, a similarly large agency-focused mREIT that competes with Annaly for the same repo funding and MBS assets; the two are frequently compared on dividend yield and discount or premium to book value.
Diversified and hybrid mortgage REITs
Starwood Property Trust (STWD), Rithm Capital (RITM), Chimera (CIM) and MFA Financial (MFA) invest across residential credit, commercial loans and servicing rights, overlapping Annaly's non-agency and MSR strategies while carrying different credit and rate profiles.
Other high-yield income vehicles
For an income investor, Annaly also competes for capital with mortgage-REIT ETFs (such as REM), business development companies, and high-yield bond and preferred funds that offer comparable double-digit yields with different risk drivers.
How to invest in Annaly Capital Management Inc. (NLY)
There are three common ways to get NLY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so NLY sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where NLY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on Annaly Capital Management Inc. (NLY)
Annaly is an income-oriented, rate-sensitive mortgage REIT whose appeal is a double-digit dividend yield and whose risk is book-value volatility, not a compounding growth story.
More on Annaly Capital Management Inc. (NLY)
Whether NLY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is NLY a buy?, and where the stock could go from here in the NLY stock forecast.
For income investors, whether NLY pays a dividend and how the payout looks is covered in does NLY pay a dividend?
Build a basket around NLY with Walnut
Use Annaly Capital Management Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Annaly Capital Management (NLY) do?
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Annaly is a mortgage REIT. It borrows money short-term and invests in a large portfolio of mostly government-backed mortgage securities, plus residential credit and mortgage servicing rights, earning the spread between its asset yields and funding costs and paying most of that out as dividends.
Why is NLY's dividend yield so high?
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As a REIT, Annaly must distribute the bulk of its taxable income, and it uses leverage to amplify the spread it earns on mortgage assets. That combination produces a yield in the low-teens percent as of July 2026, far above a typical stock, but the payout can change with interest rates and spreads.
Is NLY's dividend safe?
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No dividend is guaranteed. In Q1 2026 Annaly's earnings available for distribution of ~$0.76 exceeded its dividend, which is a supportive sign, but the company has cut its payout multiple times historically when spreads compressed, so coverage should be watched each quarter.
How do interest rates affect NLY?
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Annaly is highly rate-sensitive. Rising rates can pressure the value of its mortgage assets and its funding costs, while falling rates speed up prepayments on premium securities. Both the stock price and book value can move sharply with rates and mortgage spreads, which is the main source of its volatility.
How does NLY compare to AGNC?
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AGNC Investment is Annaly's closest agency-mREIT peer and the two are often compared on dividend yield and their premium or discount to book value. AGNC is more concentrated in agency MBS, while Annaly diversifies further into residential credit and mortgage servicing rights.
Is NLY a growth stock?
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No. Annaly is an income-oriented, rate-sensitive vehicle rather than a growth company. Its share count and portfolio can grow, but investors generally hold it for the high dividend yield, not for capital appreciation or compounding earnings growth.
How can I add NLY to a thematic basket in Walnut?
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In Walnut you can include NLY as a constituent in a basket built around an income or mortgage-REIT thesis, set a target weight, and place orders through your connected brokerage to move toward that weight. Walnut is not an investment adviser and this is not a recommendation to buy or sell NLY.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Annaly Capital Management Inc.'s investor relations page or your broker before making investment decisions.