Annaly Capital Upgraded to Buy Following Dividend Hike and Earnings Beat

Key Facts

1Annaly Capital was upgraded to a buy rating as forward yield reached nearly 15% with discounted valuation.

2FQ2 earnings showed normalized EPS of $0.79, beating consensus, with core ROE at 15.7%.

3The company increased its quarterly dividend by 7% to $0.75 per share.

Seeking Alpha upgraded Annaly Capital to a "buy" rating as its forward dividend yield reached approximately 15%. The upgrade is supported by a discounted valuation at 1x price-to-tangible book value and earnings that sufficiently cover the increased dividend payout.

The company reported FQ2 normalized earnings per share of $0.79, beating consensus estimates, alongside a core return on equity (ROE) of 15.7%. Following these results, Annaly Capital increased its quarterly dividend by 7% to $0.75 per share. In broader economic context, US Services PMI data released on September 23, 2026, showed a reading of 58.7, exceeding the forecast of 56.