% | $
Quotes you view appear here for quick access.

Annaly Capital Management, Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • yh_bob yh_bob Oct 21, 2012 11:30 AM Flag

    Mike Farrells passing

    Co-founder Denahan-Norris is just as smart - maybe smarter - will no doubt step up to sole
    Chairman and CEO. Farrell's huge pay package will disappear to the benefit of shareholders.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Maybe, but there are others who might love to follow Farrel's example and "reward" themselves with equally huge pay packages.

    • repurchasing shares may allow Annaly to maintain its dividend by reducing the number of shares to which it must pay out. Not only will this purchases create additional demand for Annaly's shares, but also each share of NLY that NLY acquires becomes treasury stock that is not eligible for a dividend. With Annaly paying nearly 13%, repurchasing $1.5 billion in equity would mean that maintaining the dividend for one year would decrease the total payout to shareholders by $195 million. This means that even if Annaly earned less income in the future due to continuing spread narrowing, its yield could stay the same or even increase.

      In all, NLY investors should be happy with this decision by NLY management. This plan should immediately result in some share price appreciation, while simultaneously reducing agency RMBS related risks to shareholders and also adding stability to the dividend.

10.17+0.09(+0.89%)Oct 24 4:01 PMEDT