Dynex Capital (DX) News & Sentiment

This Industry Outlook article has pointed out Annaly Capital Management, AG Mortgage Investment Trust, and Dynex Capital.

Annaly Capital Management, AG Mortgage Investment Trust and Dynex Capital have been highlighted in this Industry Outlook article.

Although fluctuating mortgage rates may negatively impact the Zacks REIT and Equity Trust sector, companies such as NLY, MITT, and DX are in a strong position to handle these difficulties.

While volatile mortgage rates will likely hurt Zacks REIT and Equity Trust industry, companies like NLY, MITT and DX are well-poised to navigate the challenges.

Income should pour into your account, not dribble in. We take a three-legged approach to mREIT investing for income. Today, we dive into the third leg.

We take a look at the action in preferreds and baby bonds through the last week of January and highlight some of the key themes we are watching. Preferred stocks saw mixed performance with Energy and Utilities sectors gaining; January's gain nearly offset December's losses. Agency mortgage REITs like AGNC and Annaly reported earnings that are broadly positive for preferreds shareholders.

Dynex Capital (DX) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to loss of $0.24 per share a year ago.

Dynex Capital is poised to benefit from anticipated interest rate cuts in 2025, despite the Fed's recent hawkish stance and inflation uptick. The stock is currently selling at a 4% discount to book value, offering substantial value for passive income investors with a stable 13% dividend yield. Lower interest rates should improve DX's negative net interest spread, enhancing profitability and potentially leading to a higher valuation.

Caveat Emptor series aims to help investors avoid “sucker yields,” “value traps,” and “ugly ducklings” by highlighting risks and conducting due diligence. Dynex Capital is rated a sell due to poor operational performance, negative EPS, and unsustainable dividend payout ratios. Vornado Realty Trust is rated a sell due to declining AFFO, high geographic concentration risks, and a history of value erosion.