Annaly Capital downgraded to Hold at Argus on valuation

As previously reported, Argus analyst Kevin Heal downgraded Annaly Capital to Hold from Buy. The analyst is citing the company’s plans to cut its dividend in Q1 as the earnings available for distribution are likely to be below the current quarterly payout of 88c per share. The firm added that while the projected 13%-14% dividend yield remains attractive, a Hold rating is now more appropriate for Annaly shares based on valuation.