Dynex Capital (DX) Declares $0.17 Monthly Dividend with 14.52% Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Dividend Declaration: Dynex Capital has declared a monthly dividend of $0.17 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract more income-focused investors.
- Yield Advantage: The declared dividend results in a forward yield of 14.52%, making it particularly attractive in the current low-interest-rate environment, potentially boosting investor confidence in the stock and supporting price stability.
- Shareholder Arrangement: The dividend is payable on February 2, with a record date of January 21 and an ex-dividend date also on January 21, ensuring shareholders receive timely returns and further solidifying the relationship between the company and its investors.
- Market Performance: Despite Dynex Capital's non-GAAP earnings rising from Q2 to Q3, they still fell short of consensus estimates, highlighting challenges the company faces in the current economic climate, which may impact future dividend policies.
Analyst Views on DX
Wall Street analysts forecast DX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DX is 14.42 USD with a low forecast of 13.25 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 13.980
Low
13.25
Averages
14.42
High
16.00
Current: 13.980
Low
13.25
Averages
14.42
High
16.00
About DX
Dynex Capital, Inc. is a financial services company. The Company is an internally managed mortgage real estate investment trust (REIT), which invests in mortgage-backed securities (MBS). It finances its investments principally with repurchase agreements. Its objective is to provide attractive risk-adjusted returns to its shareholders over the long term that are reflective of a leveraged, high-quality fixed income portfolio with a focus on capital preservation. It seeks to provide returns to its shareholders primarily through the payment of regular dividends and through capital appreciation of its investments. It primarily invests in Agency MBS, of which over 97% are residential MBS (Agency RMBS), including to-be-announced (TBA) securities. The remainder of its investment portfolio consists of Agency commercial MBS (Agency CMBS) and Agency and non-Agency CMBS interest-only (CMBS IO) securities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
