JPM

4 Financials We Like More Than Annaly Capital

Annaly may have the financial wherewithal to maintain its big dividend (11%) for more than the next few quarters, but its asset value and share price are in peril, and so is the company’s long-term dividend sustainability. The recent Hatteras acquisition is an ominous reminder of the atrocious yield curve and Annaly’s shrinking balance sheet. The upcoming REIT sector creation and approaching Fed interest rate hike may put a damper on this year’s dividend-stock hype.