Summary: Annaly Capital Management is one of the largest mortgage real estate investment trusts, focusing its investing strategy on mortgage finance. Most of the company’s assets (more than 90%) comprise securities issued by Fannie Mae and Freddie Mac. This guide will explore in detail how to buy Annaly Capital Management stock through a reputable third-party investing service like eToro.
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About Annaly Capital Management
About
Founded in 1997 and based in New York City, the company chiefly invests in residential and commercial securities issued by Fannie Mae or Freddie Mac, deriving its income from the net spread between the interest and borrowing costs amplified by leverage.
As of December 2023, Annaly Capital Management has a dividend yield of 12.83% and a market capitalization of $8.97 billion. It is a component of the S&P 400 index.
Additional investing
How to buy Annaly Capital Management stock: step-by-step
You can freely invest in Annaly Capital Management as the New York Stock Exchange publicly lists it. Investing in Annaly Capital Management can be done using an online investing service in these five steps:
Step 1: Choose a broker
To invest in NLY, you need to access the stock market first. The best entry point for this is an online investing platform.
To securely buy Annaly Capital Management stock (NLY), we recommend the following:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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You might also want to consider investing in other high-dividend REITs such as:
- Realty Income (NYSE: O)
- Arbor Realty Trust (NYSE: ABR)
- Starwood Property Trust (NYSE: STWD)
- Omega Healthcare Investors (NYSE: OHI)
Step 2: Open and fund your account
Once you have opted for an investing service, you have to register an account and go through the verification process. The online broker should dispatch the instructions to your email or phone within minutes.
After your account is verified, you should transfer some funds to your account. These funds will allow you to purchase REIT stocks like Annaly Capital using some of the common payment options like bank transfer, debit or credit card, and financial transaction services such as PayPal.
Step 3: Decide how much you want to invest
Prior to investing, you need to see how much funds you can allocate to this investment. Understanding your budget’s limits is vital, as going beyond it can have serious consequences. To preserve your safety, make sure you have done the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers at least three months of daily life expenses.
Remember
Step 4: Place your order and buy NLY stock
The next step is to place an order and buy NLY stock. Do the following steps:
- Step 1: Log into your investing service platform and find Annaly Capital Management’s ticker symbol NLY;
- Step 2: Designate the amount of money or the number of Annaly Capital Management shares you want to purchase;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Step 5: Monitor and manage your investment
While it is true REITs need less active management than face value-focused stock, you still have to monitor and manage your portfolio. Having fresh and relevant information about stock performance and the company’s financial health is key to the overall success of your investment.
Make sure you also keep track of the general market trend, the real estate sector environment, and the media coverage of Annaly Capital Management, as these are all factors that can influence the level of income you receive from NLY.
NLY stock price today
Pros and cons of buying Annaly Capital Management stock (NLY)
Pros
- High dividend yield: Annaly Capital Management is one of the best dividend stocks, with its enormous dividend yield of 12.83% as of December 2023;
- Diversification: Annaly Capital Management often holds a diverse portfolio of mortgage-backed securities, the majority of which is within Fannie Mae and Freddie Mac;
- Passive investment: Annaly Capital Management has to distribute at least 90% of its taxable income to stakeholders in dividend payments. This represents an excellent way to benefit from real estate without the involved obligations of owning it;
- Liquidity: Unlike actual property, which requires significant time and effort to buy or sell, REITs are traded on public exchanges quickly and easily.
Cons
- Interest rate sensitivity: As a mortgage REIT, Annaly Capital Management must pay shareholders 90% or more of taxable income, leaving short-term debt as its primary growth method. This means the company’s performance is highly susceptible to changes in interest rates;
- Mortgage REIT complexity: Mortgage REITs operate differently from your usual REITs, relying on several moving parts that can be tough to predict or estimate, including high-interest, short-term debt. Some investors might be uncomfortable with this level of complexity;
- Leverage risk: Annaly often resorts to leverage to enhance returns. While this measure can multiply profits in economic upturns, it also increases the risk, especially during periods of market upheaval.
Common mistakes to avoid when investing
Make sure to avoid these common investing mistakes:
- Lack of research: Research the Annaly Capital Management company and its REIT stock in detail, along with the market state of the mortgage sector, before investing;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Annaly Capital Management stock
Where is Annaly Capital Management's stock listed?
Annaly Capital Management trades under the NLY ticker on the New York Stock Exchange.
How do I buy Annaly Capital Management stock?
You can invest in Annaly Capital Management via an online brokerage like eToro.
Does Annaly Capital Management pay dividends?
Yes, Annaly Capital Management has a long, high dividend-paying tradition, with a dividend yield of 12.83% as of December 2023.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
