Annaly (NYSE:NLY) can grow its net interest margin and potentially even its dividend as the yield curve steepens and short-term lending rates remain low. Interest rates are likely to stay low to support an
Buy Annaly's 10.0% Yield For This Reason Only
Summary
- Annaly has seen a successive improvement in its net interest margin in the last three quarters.
- A steepening yield curve and higher bond yields support an expansion in Annaly’s NIM.
- Upside through appreciation is limited at this valuation, but the dividend could be raised.
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