Boston, MA 09/19/2014 (wallstreetpr) – Real estate related investments company, Annaly Capital Management, Inc. (NYSE:NLY) said that its board has declared a quarterly dividend of 30 cents a share for the third quarter. This meant a drop growth rate to the negative territory in the last three-year, as well as, five-year period.
Dividend Rate
The dividend would be payable to its shareholders, whose name appears on the record books of October 1, its statement said. Annaly Capital Management, Inc. (NYSE:NLY) has set October 31 for paying the latest dividend. The stock would become ex-dividend from September 29.
The current announcement of dividend suggests that it provided 10.5% yield and works out to $1.20 at an annualized rate. The projected ten-year dividend yield also works out to 10.5%. The dividend payout ratio represented 198%
Significantly, the growth rate in dividend has come down. Its three-year average dividend growth rate dipped to minus 21.2% while its five-year average dividend growth pace slipped to minus 8.26%. However, Annaly Capital Management, Inc. (NYSE:NLY) has been paying dividend since 1997.
Dividend History
Annaly Capital has paid a quarterly cash dividend of as much 75 cents a share in December 2009, a data from Nasdaq indicated. However, in the next quarter itself, it has slashed its dividend to 65 cents a share only to increase it marginally to 68 cents a share in the next few quarters.
However, Annaly Capital Management, Inc. (NYSE:NLY) was able to maintain its dividend between 60 cents a share and 65 cents a share till September 2011. Dividend dropped to 55 cents a share in March 2012 from 57 cents a share in December 2011. From then on, it was a downtick only. Dividend was further reduced to 45 cents a share in December 2012 and to 35 cents a share in September 2013.
Maintaining Dividend
Including the latest announcement, Annaly Capital Management, Inc. (NYSE:NLY) has been maintaining a dividend of 30 cents a share in the last four quarters. As a result of the continuous downtrend in paying dividend in the last five-year period, the growth rate has slipped into minus category.
Though the yield in dividend presents a good picture due to its comparison with the current share price, the continued downtick in dividend rate would keep away dividend-fond investors.
