Hey folks, James here, sorta buzzing to tell ya that we’ve jazzed up the Wealthy Retirement website with a freaking cool new commenting gizmo. Think of it as your virtual lounge where you can quip, gripe, and banter with your fellow money-minded misfits. Whether you’re here to drop some wisdom bombs or simply poke around and request a few Safety Net and Value Meter insights, it’s all ready for you. Soak it in and get rowdy down there after today’s deep dive into our latest Safety Net segment!
Okay, so let’s time travel back to the heady days of June 2022. I took a stab at breaking down the dividend situation of Annaly Capital Management (NYSE: NLY). Did I predict doom and gloom? You bet I did! Warned you all to brace for another dividend haircut, and surprise, surprise, that $0.88 per share took a nosedive to $0.65 just nine months down the road.
Fast forward, and, it crept slightly to $0.70 this year. But who are we kidding, is Annaly finally getting back on its feet or just putting on a brave face?
So, what’s the deal with Annaly? It’s one of those mortgage real estate investment trusts (yeah, REITs if you’re feeling fancy), focusing on housing. With a ginormous $81 billion holding bankrolling over 900,000 homes. Sounds impressive, right? Until you poke into the net interest income, which, let’s be real, looks like it got caught in a bad stock market spiral. Boom, shade thrown!
Here’s the kicker, though: last year’s net interest income jumped to $248 million from a negative $111 million—yikes, talk about a bounce! Yet, that’s a crumb compared to the $1.5 billion raked in 2022. And the forecast for this year’s even bleaker—almost halved to $130 million. Big yikes! 😬
And yet, despite this shaky cash castle, Annaly is out here trying to dish out about $1.5 billion in dividends annually. Yes, you heard that right. Are they printing money in the basement, or what? Short answer—they can’t afford the cash rain dance they’ve been putting on.
Oh, and did I mention the repeated dividend slashes over the centuries? Classic Annaly! When times get rocky, guess where the first swing of the ax lands? Yap, the dividend’s getting jittery.
So my sage advice from 2022 still echoes: Own Annaly? Buckle up and brace for another chop shop session in the dividend department.
Drumroll… Dividend Safety Rating: F. Yes, friends, that’s F for “Freaking uncertain and flimsy.”
Yeah, this was a bit of a messy tirade. But then again, isn’t our financial world kinda messy? Anyway, throw your thoughts, your tickers, whatnot in the magic comment box below. Who knows, yours might just inspire the next stock spotlight. Remember, we’re hunting individual stock stories only. ETFs, mutual funds? Nah, those don’t fly here.
And seriously, don’t leave me hanging. Dig around the site, maybe my psychic evaluation has already graced your favorite stock. Click “Search” — top-right — and unleash your curiosity.
Catch you on the flip side! 🕺
