Dynex CapitalNYSE: DX

Dynex Capital Inc.'s forward dividend yield and a changing U.S. inflation outlook make a strong case for a tactical opportunity. Shifting to specified pools to secure certainty might de-risk the vehicle. Additionally, a more desirable short-term liquidity market fuels an upbeat argument. Dynex's common stock trades below book value, and its preferred stock doesn't seem overly demanding, reducing the risk of Dynex's common shares being 'toxic waste.'

Dynex Capital Series C preferred stock offers a compelling income opportunity with a 6.9% stripped yield, stepping up to 9.7% if not redeemed by Apr-2025. The stock benefits from a nearly 100% Agency MBS portfolio and a 9.2x equity/preferreds coverage, making it a lower-risk, high-yield investment. DX's proactive risk management and equity issuance behavior enhance preferreds' safety, outperforming common shares with lower volatility.

As a retired income investor, I focus on high-yield distributions, particularly from REITs, which offer diversification and inflation hedging but are sensitive to interest rates. Despite the real estate sector's poor performance over the past three years, Dynex Capital is now a compelling buy due to its strong Q3 earnings, increased dividend, and strategic positioning. Dynex's Q3 results show improved performance, with increased book value, reduced leverage, and higher comprehensive income, driven by strategic capital management and favorable market conditions.

24/7 Wall St. Insights Demand for ultra-high-yield dividend stocks is growing.

Dynex Capital, Inc. (NYSE:DX ) Q3 2024 Earnings Conference Call October 21, 2024 10:00 AM ET Company Participants Alison Griffin - Vice President, Investor Relations Byron Boston - Chairman and Co-Chief Executive Officer Smriti Popenoe - Co-Chief Executive Officer, President and Chief Investment Officer T.J. Connelly - Senior Vice President, Strategy and Research Rob Colligan - Chief Financial Officer and Chief Operating Officer Conference Call Participants Bose George - KBW Eric Hagen - BTIG Trevor Cranston - Citizens JMP Jason Weaver - Jones Trading Doug Harter - UBS Operator Ladies and gentlemen, good morning and thank you for standing by.

Dynex Capital (DX) came out with a quarterly loss of $0.10 per share versus the Zacks Consensus Estimate of $0.29. This compares to loss of $0.28 per share a year ago.

GLEN ALLEN, Va.--(BUSINESS WIRE)--Dynex Capital, Inc. announced today that the Company's Board of Directors has declared a cash dividend of $0.13 per share on its Common Stock (NYSE: DX) for October 2024. The Common dividend is payable on November 1, 2024, to shareholders of record as of October 25, 2024. About Dynex Capital Dynex Capital, Inc. is a financial services company committed to ethical stewardship of stakeholders' capital; employing comprehensive risk management and disciplined capit.

GLEN ALLEN, Va.--(BUSINESS WIRE)--Dynex Capital, Inc. (NYSE: DX) announced today that it will release its financial results for the third quarter 2024 before market open and will host a conference call and live audio webcast to discuss its financial results at 10:00 a.m. ET on Monday, October 21, 2024. Webcast Details The live audio webcast will be accessible online at www.dynexcapital.com on the homepage under “Current Events.” An archive of the webcast will be available on the Company website.

DX-C is a top pick among mortgage REIT preferred shares, offering lower risk due to Dynex Capital's strong management and high common equity to preferred liquidation ratio. The current stripped price of DX-C is just over $25.00, with a yield of 6.89%, but it will switch to a floating rate in 2025. Investors should consider DX-C for its relatively low-risk profile and potential for higher yields post-2025, despite the current modest yield.