• Annaly Capital Management, Inc. recently declared third-quarter 2026 cash dividends on its Series F, G, I and J preferred shares, with payouts scheduled for September 30, 2026 to holders of record on September 1, 2026.
• At the same time, Annaly moved to redeem all outstanding Series I preferred shares at US$25.00 each on October 1, 2026, signaling an adjustment in its capital structure and funding mix.
• We’ll now examine how the full redemption of the Series I preferred shares may influence Annaly’s existing investment narrative and outlook.

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Annaly Capital Management Investment Narrative Recap

To own Annaly Capital Management, you generally need to believe in its ability to manage interest rate risk and maintain earnings from its mortgage-focused portfolio. The full redemption of the Series I preferred shares looks like a contained balance sheet move rather than a shift in the near term catalyst, which still centers on how effectively Annaly can benefit from attractive Agency MBS spreads while managing the key risk of interest rate volatility and wider mortgage spreads.

The recent declaration of third quarter 2026 preferred dividends for the Series F, G, I and J shares is closely tied to this. It highlights Annaly’s ongoing use of fixed to floating preferred capital, which interacts directly with short term rate moves that influence both hedging costs and net interest margins, and therefore feeds into how sensitive the business remains to elevated rate volatility.

Yet even with these income payouts and capital moves, investors should be aware that prolonged interest rate volatility could...

Annaly Capital Management's narrative projects $2.7 billion revenue and $2.3 billion earnings by 2029.

Uncover how Annaly Capital Management's forecasts yield a $24.00 fair value, in line with its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see Annaly’s fair value between US$24 and about US$44, reflecting a wide spread of individual views. Against that backdrop, the ongoing risk that rising or volatile interest rates widen mortgage spreads and pressure portfolio returns gives you a concrete issue to weigh as you compare these different perspectives.

Explore 4 other fair value estimates on Annaly Capital Management - why the stock might be worth as much as 86% more than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Annaly Capital Management research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Annaly Capital Management research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Annaly Capital Management's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.