Annaly Capital posts strong Q1 earnings with solid dividend coverage and 12.31% yield

Annaly Capital reported strong first-quarter earnings with $0.76 available for distribution per share, comfortably covering its $0.70 dividend. The mortgage REIT's 12.31% yield is supported by a leveraged agency mortgage-backed securities portfolio, generating a 1.35% interest rate spread. Valuation metrics remain attractive at 7.7 times earnings and 1.15 times book value, with discounted cash flow analysis indicating a potential 33.6% upside. The company maintains a buy rating based on improving dividend safety, earnings growth, and a favorable entry price for investors.