Annaly Cap. Management dividend below expectation

Real estate investment trust Annaly Capital Management said on Thursday it would pay a 50-cent dividend, lower than one analyst expected, sending shares down in Friday trading.

REITs are required by law to pay dividends of at least 90 percent of taxable income.

Annaly Capital paid a 50-cent dividend in January as well.

Fox-Pitt Kelton analyst Matthew Howlett had expected the company to earn 60 cents per share in the first quarter, paying most out that out as a dividend. He will likely lower his core profit estimate down to a range between 53 cents and 55 cents, he said.

The company invests in mortgage-backed securities. On Wednesday, the Federal Reserve said it would buy up an additional $750 billion of mortgage-backed securities, or $1.25 billion total. That will keep prices for the securities elevated, Howlett said.

Annaly Capital Managment said the first-quarter dividend is payable April 29 to shareholders of record on March 30.

The analyst kept an "Outperform" rating on the stock and an $18 price target, although he said the price target was under review.

In midday trading Friday, shares slipped 13 cents to $13.99, recovering from an early decline of 3.3 percent to $13.64.