This 11.46% Yield Was Sustained, Though Some Shareholders Don't Know It Yet

This company declared two dividends for the quarter, but they usually only have one. Some of the services reading dividend yields may display inaccurate information. The annual dividend is still $1.20. Based on a recent price of $10.47, the yield is running 11.46%. If the current environment is extended through the fourth quarter, things will look good for the dividend. If the fourth quarter has a flattening yield curve with either asset yields or cost of funds getting hammered, it would put the dividend in jeopardy.

Annaly Capital Management (NYSE:NLY) has a history of paying out $.30 per quarter, but their latest quarterly dividend of $.2641 left some shareholders confused. Since Annaly Capital Management acquired Hatteras Financial Corp. (NYSE:HTS) earlier in the quarter, they paid a "Short Period Common Stock Dividend" near the start of the quarter to get their books prepared for the acquisition. For the long-term shareholder, there was no change in the total quarterly dividend rate. That won't stop some shareholders from getting nervous, and it won't stop automatic engines from reporting the wrong dividend yield.

Source: Seeking Alpha

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