The whole REIT sector was down for the most part today. NLY did not perform any different. The downgrade had zero influence. Everyone knows quater point is in. Look for the Fed to play the might or might not raise again game. I see more layoffs in the news. No more tax breaks. Oil prices so high it has to be a big drag. Health cost eating a big hole in everyone.
Doing this as a DRIP in an IRA is a "very" good idea since the dividend repurchase is tax deferred.
Still a good idea if not in an IRA, since it only takes around 7 years for the dividends to double your holdings assuming the share price stays boucning around 16 to 20 with an average price above 17. Paying taxes from other source of course.