Welcome Signs for Annaly Capital Management, Inc. (NLY): Crexus Investment Corp (CXS)

Armour Residential’s fourth quarter earnings missed analysts’ estimates. Core income of $69.8 million fell 2.2% sequentially, while the taxable REIT income of $90.3 million increased 4.5% on higher gain on sale of MBS. The company’s reported CPR of 14.1% climbed from third quarter’s 13% CPR.

The company’s charter allows its management to own securities other than Agency mortgage backed securities, and I believe such addition of securities will support its bottom line. The company pays monthly dividends, which is one big attraction for investors looking for regular income. The challenging macroeconomic environment forced Armour Residential to cut its dividends twice during the prior year and once already since the beginning of the current year.

Conclusion

I believe Annaly Capital Management, Inc. (NYSE:NLY) is clawing its way back from its worst performance. Unlike most of the pure play mortgage REITs, Annaly Capital maintained its quarterly dividend and is making strategic moves that will enable the company to outmaneuver the Fed.

The article Welcome Signs for Annaly Capital originally appeared on Fool.com and is written by Adnan Khan.

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