Mortgage REIT Annaly Capital Management’s (NYSE:NLY) current dividend yields 10.37%. But while the current low interest-rate environment is favorable for NLY, can the stock gain in the near term despite the company’s agreement to sell its commercial real estate business in March 2021? Let’s find out.Mortgage real estate investment trust (REIT) Annaly Capital Management, Inc. (NLY) has been paying regular, quarterly dividends for more than two decades. The company paid a $0.22 quarterly dividend on July 30, which cumulates to an $0.88 annual dividend and yields 10.37%. Its four-year average dividend yield is 12.47%.
Because the Federal Reserve has indicated that interest rate hikes could come in late 2023, this could adversely impact NLY’s net interest spread. The uncertainty surrounding the timing of the Fed’s tapering also continues to worry investors. NLY has retreated 6.5% over the past three months and 4.4% over the past month to close Friday’s trading session at $8.49. In addition, NLY entered a definitive agreement in March 2021 to sell its commercial real estate business to Slate Asset Management L.P. So, its near-term prospects look uncertain.
Here are the factors that we think could shape NLY’s performance in the coming months: