Annaly Preferred Versus Common Dividends (NLY)

Annaly Capital Management, Inc. (NYSE: NLY) is often considered controversial because of its high dividend yielding mortgage REIT status.  Today’s news came out that the ‘preferred’ share dividends have been declared, but keep in mind that this is different from the common dividends.

Annaly generates net income for distribution to investors from its investment securities and from dividends its receives from subsidiaries and here are the preferred share distributions:

• 7.875% Series A Cumulative Redeemable Preferred Stock payment was declared a Series A Preferred Stock cash dividend for the first quarter of $0.492188 per share of Series A Preferred Stock payable on April 2, 2012 to holders of record as of March 1, 2012.
• 6% Series B Cumulative Convertible Preferred Stock payment was declared as a Series B Preferred Stock cash dividend for the first quarter of $0.375 per share of Series B Preferred Stock payable on April 2, 2012 to holders of record as of March 1, 2012.

The common stock reported its earnings last Tuesday and its past dividends were noted as follows for the common stock that investors watch: “Common dividends declared for the quarters ended December 31, 2011, December 31, 2010, and September 30, 2011 were $0.57, $0.64, and $0.60 per common share, respectively.”

Annaly shares are up $0.03 at $16.57 against a 52-week range of $14.05 to $18.79.