Annaly Capital Management reverse split 1:4

The Board of Annaly Capital Management (NLY) announced a 1:4 reverse stock split along with dividend annoucement. The reverse stock split is expected to take effect following the close of business on September 23, 2022 (the “Effective Time”). Accordingly, at the Effective Time, every four issued and outstanding shares of the Company’s common stock will be converted into one share of the Company’s common stock. The Company’s common stock is expected to begin trading on the New York Stock Exchange on a post-reverse stock split basis beginning on September 26, 2022

The Company is implementing the reverse stock split with the objective of reducing Annaly’s number of shares of common stock outstanding to more closely align with the number of common shares outstanding for companies of a similar market capitalization. As a result of the reverse stock split, the number of outstanding shares of Annaly’s common stock will be reduced from approximately 1.8 billion to approximately 445 million. Furthermore, the Company believes the reverse stock split will make the common stock more attractive to a broader range of investors, which has the potential to reduce share price volatility over time. 

Board also announced a $0.88 dividend which is in line with previous $0.22 dividend before this reverse split. My 296 shares in NLY will turn into 74 share and no impact on dividend income.