Annaly Capital (NLY) Stock: Dividend vs Earnings, Book Value, Repo 2026

The dividend against two earnings numbers

Quote pages show the dividend and the price. The filings show what the dividend is paid out of. Annaly reports GAAP net income and a non-GAAP measure it calls earnings available for distribution (EAD). The company says EAD is “used by the Company’s management and, the Company believes, used by analysts and investors” to measure its progress toward its business objective; it also warns that “non-GAAP financial measures also have limitations.” EAD leaves out realized and unrealized gains and losses on investments and derivatives, adds TBA dollar roll income and subtracts amortization of mortgage servicing rights (MSR), among other adjustments.

The ratio column is our arithmetic. The company’s own statement of the streak, in its July 21, 2026 release, is that Annaly delivered “a 5.5% economic return and EAD that exceeded the dividend for the ninth consecutive quarter.” The last quarter in which EAD was below the dividend was Q1 2024 ($0.64 against $0.65). Economic return is the company’s measure: the change in book value plus the dividend declared, over the prior book value.

Longer history, by year:

The 2022 and 2023 figures are on the post-reverse-split share count: Annaly’s 10-K says a one-for-four reverse split took effect after the close on September 23, 2022. The dividend was reset on March 14, 2023, when the company declared $0.65 for Q1 2023. Its release said Annaly “has reduced the common dividend to a level in line with the Company’s historical yield on book value.” EAD per share fell 32.4% from 2022 to 2023 and the dividend 26.1% (our arithmetic). Since the reset, EAD per share has been $2.86, $2.70 and $2.92 a year against $2.60, $2.60 and $2.80 of dividends.

The coverage the per-share figure hides

EAD per share is EAD attributable to common stockholders divided by the weighted average number of shares. The dividend is declared per share on the shares outstanding at the record date, plus dividend equivalents on share-based awards. When a company issues shares during the quarter, the two denominators differ. So the same two numbers can be set side by side in dollars, taken from the earnings releases and the 10-Q and 10-K equity notes:

In the fourth quarters, dividends declared are the 10-K full-year figure less the nine-month figure in the third-quarter 10-Q (our arithmetic). The ratio fell below 1.0 in Q1 2024 (0.98), Q3 2024 (0.93) and, by $0.9 million, Q3 2025 (0.998, shown as 1.00). Q3 2024 is the clear case: Annaly issued 57.0 million shares through its at-the-market program that quarter, so the weighted average count was 515.7 million while the $364.9 million declared works out to 561.4 million shares and equivalents at $0.65 (our arithmetic). For full years the dollar ratios were 1.09 (2023), 1.01 (2024) and 1.01 (2025), against per-share ratios of 1.10, 1.04 and 1.04.

This is not a sign of distress; it is a thinner margin than the per-share streak suggests, and it will be thinner or fatter depending on how many shares are issued before each record date. The company’s own comparison remains per share.

What turns $1.06 of GAAP earnings into $0.79 of EAD

Here is the company’s reconciliation for the last two quarters, in dollars. The “other adjustments” line is the sum of amortization of intangibles, transaction expenses and non-recurring items, the tax effect of non-EAD items, EAD attributable to noncontrolling interests and the premium amortization adjustment (our arithmetic).

In Q1 2026 GAAP net income was $290.5 million because $672.1 million of losses on investments were only partly offset by $409.1 million of gains on derivatives; in Q2 the investment loss was $318.5 million and the derivative gain $552.4 million. EAD removes most of that swing, which is why it moves in a narrow range ($0.64 to $0.79 a share over eleven quarters) while GAAP ranges from a $0.88 loss to $1.40. EAD does include the net interest on interest rate swaps: $87.5 million in Q2 2026, $96.8 million in Q1 2026 and $185.7 million in Q2 2025. EAD per share still rose from $0.73 to $0.79 over that year because economic net interest income excluding the premium amortization adjustment rose from $467.2 million to $594.1 million.

One more definition matters for GAAP: the 10-Q says that for Agency securities bought before July 1, 2022, fair value changes go through other comprehensive income rather than net income, and for securities bought after that date through net income. GAAP net income therefore does not capture every change in book value, which is why the table above also shows book value and economic return.

Book value and a share count up 50%

Book value per common share stayed between $18.45 and $20.21 over the eleven quarter-ends and ended at $20.15. It fell in five of the ten quarters from Q1 2024 to Q2 2026, with the low of $18.45 on June 30, 2025, and has risen in two of the last three. Over the whole period it rose 3.7%, from $19.44, and by 9.2% in the last year, from $18.45 (our arithmetic). Each quarterly dividend has been between 3.3% and 3.8% of the prior quarter-end book value (our arithmetic). Adding the $6.85 of dividends declared since Q1 2024 to the change in book value gives 138.9% of the starting book value; that is not a shareholder return, because it ignores the price anyone paid, reinvestment and tax. Our AGNC and Annaly page puts Annaly’s book value and economic return next to AGNC’s and Two Harbors’.

The share count did the heavy lifting on size: 500.1 million at December 31, 2023, 750.6 million at June 30, 2026 (+50.1%), and 468.3 million at December 31, 2022 (+60.3% since). Total equity went from $11.3 billion to $17.0 billion (+49.7%). Issuance through the at-the-market (ATM) program, for the quarters in which the 10-Qs give exact proceeds:

The other quarters: 57.0 million shares for about $1.1 billion in Q3 2024 (the 10-Q rounds the proceeds), and, from the 10-K full-year totals of 77.9 million shares and $1.6 billion in 2024 and 127.9 million shares and $2.6 billion in 2025, about 20.3 million shares in Q4 2024 and about 25.9 million in Q4 2025 (our arithmetic). In each quarter in the table the average net price was above both the prior and the quarter-end book value, so each issue added to book value per share rather than diluting it (our arithmetic). The footnote price was above book value at each of the six quarter-ends from March 31, 2025 to June 30, 2026, between 1.02 and 1.11 times (ours); that relationship can reverse, as at December 31, 2024, when the $18.30 footnote price was 0.96 times the $19.15 book value. On December 22, 2025 the company signed new distribution agreements for up to $2.5 billion of common stock through 13 sales agents, with commissions of up to 1.00%, replacing a $2.0 billion program from May 2025. It raised $955.7 million under the ATM in the first half of 2026.

Buybacks: authorized, not used

Annaly’s 10-Q says its Board authorized “the repurchase of up to $1.5 billion of our outstanding common shares through December 31, 2029,” and that “No shares were repurchased with respect to this share repurchase program during the quarter ended June 30, 2026.” The maximum dollar value that may yet be repurchased was $1.5 billion at June 30, 2026. The 10-Qs for 2024 and 2025 say the same of the earlier programs. A separate authorization covers up to 63,500,000 preferred shares (about $1.6 billion of liquidation value) through December 31, 2029; none were repurchased either.

What it did do with preferred stock is different from a buyback. It issued 11,000,000 shares of 8.875% Series J preferred in the third quarter of 2025 for $275 million gross, and on August 19, 2026 announced it would redeem all 17,700,000 shares of its 6.750% Series I preferred at $25.00 each on October 1, 2026, which it did; an 8-K of October 2 reports the redemption and the reclassification of the redeemed shares as common stock, effective that day. That is $442.5 million (our arithmetic). Series I dividends were $10.0 million in Q2 2026, about $40 million a year, or about 9.0% of the redemption amount (our arithmetic), because the series has paid a floating rate (three-month term SOFR plus 4.989% plus a 0.26161% adjustment) since June 30, 2024. On the June 30 numbers, taking $442.5 million out of total equity of $17.0 billion would lift economic leverage by about 0.2 turns, from 5.6 to 5.8, if nothing else changed; that is our illustration, not a company figure.

Leverage: 7.4 to 1 on GAAP, 5.6 to 1 on the company’s economic measure

Economic leverage counts recourse debt plus TBAs and net unsettled trades; it excludes the non-recourse securitization debt ($34.1 billion at June 30, 2026) and participations ($2.6 billion), which are secured by the loans in them. That is $36.7 billion, or 2.2 times equity, that is not in the 5.6 (our arithmetic). Total equity includes $1.8 billion of preferred stock and $53 million of noncontrolling interests; on the $15.1 billion of common equity (750.6 million shares times $20.15), economic debt is 6.3 times (our arithmetic). The 10-Q describes the risk appetite this way: “We generally expect to maintain an economic leverage ratio no greater than 10:1 considerate of our overall capital allocation framework.”

Total assets were $143.7 billion at June 30, 2026 against $93.2 billion at December 31, 2023 (+54%, our arithmetic), while total equity rose 49.7%.

Repo: a short ladder, and a new overnight bucket

The weighted average remaining maturity on repurchase agreements and other secured financing was 37 days; on repurchase agreements alone it was 33 days at June 30, 2026, against 35 at December 31, 2025 and 49 at June 30, 2025. The 10-Q’s repo note shows the shape of the change: gross repurchase agreements maturing in one day were $35.4 billion at June 30, 2026 (40.7% of $86.9 billion, our arithmetic) and zero at December 31, 2025, when $45.0 billion was in the 2-to-29-day bucket. The filing does not explain the shift. It does say that Arcola Securities, a FINRA member broker-dealer subsidiary, “borrows funds through the General Collateral Finance Repo service offered by the FICC, with FICC acting as the central counterparty.” The company’s reported days to maturity on repurchase agreements were 44 at December 31, 2023 and between 32 and 36 at five of the last eight quarter-ends, with 49 to 50 at the three quarter-ends of 2025 before the December reading of 35.

Other facts from the same 10-Q:

• $86.6 billion of the $86.9 billion of repurchase agreements, 99.7% (our arithmetic), is due within one year in the contractual obligations table; $625 million of the $1.125 billion of other secured financing is too, and $500 million falls due in one to three years.
• The 37 counterparties are 23 in North America ($71.2 billion of secured financing), 10 in Europe ($13.2 billion) and 4 in Japan ($3.7 billion).
• The weighted average haircut was approximately 3%, and total financial assets and cash pledged were $90.2 billion. Unencumbered financial assets were $8.0 billion, of which Agency MBS $5.2 billion and cash $0.4 billion.
• The filing states the margin rule plainly: “Our repurchase agreements generally provide that in the event of a margin call we must provide additional securities or cash on the same business day that a margin call is made.”
• The hedge ratio was 97% at June 30, 2026 (87% at March 31), with swaps at a weighted average pay rate of 3.20% and receive rate of 3.73%.

The longer-term funding is Onslow Bay’s securitization debt: $34 billion outstanding at an average financing rate of 5.31%, with a record $6.8 billion issued in Q2 2026 at an average cost of 5.65%. In July 2026, after the quarter, Annaly closed two more securitizations (OBX 2026-NQM9, $1.0 billion; OBX 2026-NQM10, $937.8 million).

Not only agency bonds: three strategies and what each earned

The Agency portfolio grew 45% from December 31, 2023 and residential credit 82% (our arithmetic), so the credit share of capital rose from 20% to 22% (23% at March 31, 2026) and MSRs reached 21%. The 10-Q’s segment note shows what each earned in Q2 2026: Agency net income of $566.4 million on $90.6 billion of segment assets, Residential Credit $154.3 million on $48.1 billion, and MSR $116.4 million on $5.0 billion. A year earlier the Agency segment lost $87.3 million, Residential Credit earned $83.3 million and MSR $69.7 million, which is the point of holding three strategies: they did not move together. Of the company’s $247.4 million of total other income in Q2 2026, $239.0 million sat in the Agency segment.

The 10-Q’s rate and spread table is the company’s estimate of what an instantaneous parallel shock does at June 30, 2026: a 50 basis point rise in rates reduces net asset value 2.2% and a 25 basis point widening of mortgage spreads 8.7%; a 25 basis point tightening adds 8.9%. A 50 basis point rise also lowers projected economic net interest income over twelve months by 2.9%. These are model estimates, not forecasts.

Preferred stock and the dividend’s tax character

Preferred stock was $1.80 billion of carrying value at June 30, 2026 (before the Series I redemption), ranks ahead of the common and cost $41.0 million of dividends in Q2 2026. The 10-K tax notes show 100% of common dividends declared in 2024 ($2.60) and 2025 ($2.80) taxable as ordinary income; for 2023, 100.0% of the $2.83 paid in the year plus the $0.65 paid on January 31, 2024; and for 2022, 86.5% ordinary income and 13.5% return of capital on $3.52. Ordinary REIT dividends do not get the qualified-dividend rate; see our pages on the Section 199A deduction and on return of capital. This is not tax advice; your Form 1099-DIV governs, and when it is due is on our 1099-DIV page.

What changed in the latest quarter

• Dividend raised to $0.75 from $0.70 (+7.1%, our arithmetic), the first change since Q1 2025.
• Book value up $0.33 to $20.15; GAAP $1.06; EAD $0.79 (up from $0.76); economic return 5.5%.
• Repurchase agreements at $86.9 billion, 40% of the secured funding overnight, and a hedge ratio of 97%, up from 87%.
• A record $7.1 billion of loan purchases and a record thirteen securitizations ($6.8 billion), with residential credit flat at $10.4 billion.
• ATM issuance of 20.3 million shares for $447.2 million; after quarter-end, the Series I preferred redemption on October 1.
• Net interest margin excluding the premium amortization adjustment 1.76% and net interest spread 1.50% (the company’s definitions), against 1.71% and 1.47% a year earlier.

When the next filing arrives

As of October 18, 2026 the 10-Q for the quarter ended September 30, 2026 is not filed. The company announced on September 29 that it will release results after the market close on Tuesday, October 20, with a conference call on October 21 at 9:00 a.m. Eastern. The Q2 release came on July 21 and the 10-Q on July 29, the Q1 pair on April 21 and April 29, and in 2025 the Q3 release was October 22 and the 10-Q October 30, so the Q3 10-Q should land in the last days of October (our inference from past dates, not a company statement). We found no Q3 dividend declaration in the SEC filings through October 18.

How NLY compares with the other mortgage REIT pages

Annaly is an agency REIT with a credit book and a servicing business of unusual size, and it calls itself internally managed: its March 2023 release says “Annaly is internally managed.” Our AGNC page compares Annaly with AGNC and Two Harbors on book value and economic return; our ARMOUR and Orchid pages cover two smaller agency REITs. Rithm Capital is closer to an operating company and MFA Financial is a credit story. Commercial lenders such as Arbor and those in our commercial mortgage REIT table carry a different risk: borrowers not paying, rather than spreads and funding. Compared with the non-traded REITs and interval funds on our other pages, Annaly’s book value is marked to market every quarter and its shares trade daily; the 10-Q gives the book value, not what anyone would pay.

What a shareholder can do with this

• Read coverage both ways. Per share, EAD was 1.05 times the dividend in Q2; in dollars 1.04, and 1.02 over ten quarters. The margin depends on how many shares are issued before each record date.
• Check three numbers in the Q3 10-Q: book value per share against $20.15, EAD to common in dollars against dividends declared, and whether the overnight share of repo stays near 40%.
• Treat issuance as part of the story. The share count rose 16.9% in a year (642.1 million to 750.6 million, our arithmetic). Book value per share held because the stock was issued above book, which depends on the price staying above it.
• Look at the preferred. The Series I redemption ($442.5 million) removes about $40 million a year of preferred dividends and, on the June 30 numbers, adds about 0.2 turns to economic leverage.
• Price is outside this page. The company’s footnote price of $22.36 and its “annualized dividend yield” of 13.42% at June 30, 2026 are quoted from the release, not a view. This page does not say whether to buy, hold or sell.

If you want to know when Annaly files again, the alert below emails you when it does. Annaly Capital Management (CIK 1043219) filed its most recent document on EDGAR on October 2, 2026 (an 8-K on the Series I redemption); the Q3 results are due October 20.

FAQ

Sources, read and saved on October 18, 2026: Annaly Capital Management, Inc. (CIK 1043219) earnings releases (Form 8-K Exhibit 99.1) for Q4 2023 (accession 0001628280-24-003712), Q1 2024 (0001628280-24-017650), Q2 2024 (0001628280-24-032822), Q3 2024 (0001628280-24-043434), Q4 2024 (0001628280-25-002999), Q1 2025 (0001628280-25-021094), Q2 2025 (0001628280-25-035741), Q3 2025 (0001043219-25-000007), Q4 2025 (0001043219-26-000007), Q1 2026 (0001043219-26-000021) and Q2 2026 (0001043219-26-000052); Forms 10-Q 0001628280-24-020047, 0001628280-24-033212, 0001628280-24-044566, 0001628280-25-023811, 0001628280-25-036724, 0001043219-25-000012, 0001043219-26-000028 and 0001043219-26-000058; Forms 10-K 0001628280-24-005115, 0001628280-25-005451 and 0001043219-26-000013; Forms 8-K 0001628280-23-007856 (March 14, 2023 dividend), 0001193125-25-175436 (Series J), 0001193125-25-328728 (ATM program, December 22, 2025), 0001043219-26-000061 (August 19, 2026) and 0001043219-26-000070 (October 2, 2026); and the Business Wire release of September 29, 2026 on the Q3 results date, read on finviz.com. Ratios, sums, the fourth-quarter dollar and share figures derived from annual and nine-month filings, average issue prices and the leverage illustrations are our arithmetic. Each company measure uses its own definition. This is analysis of public documents, not investment, legal or tax advice.