5 Best Dividend Stocks Yielding at Least 7% According to Hedge Funds

3. Dynex Capital, Inc. (NYSE:DX)

Number of Hedge Fund Holders: 35

Dividend Yield as of April 25: 14.83%

On April 20, JonesResearch analyst Jason Weaver lowered the firm’s price recommendation on Dynex Capital, Inc. (NYSE:DX) to $14.75 from $15.25. It reiterated a Buy rating following the Q1 report. The firm said spread volatility is creating “near-term noise,” but it also extends Dynex’s runway for attractive asset deployment. Mortgage spreads widened in the back half of the quarter, though the company’s hedging portfolio performed well.

The company reported Q1 2026 earnings on April 20. Book value was $12.60 per share at quarter-end. Chief Financial Officer Sartori said economic return for the period was negative 2.5%. This included $0.51 per share in common dividends and a $0.85 per share decline in book value. He also noted that leverage closed the quarter at 8.6x relative to total equity. At the same time, the company maintained a strong liquidity position, with $1.3 billion in cash and unencumbered securities. This represented more than 46% of total equity at the end of the quarter.

Dynex Capital, Inc. (NYSE:DX) operates as a financial services company and is structured as an internally managed mortgage REIT. It invests primarily in mortgage-backed securities and finances these investments mainly through repurchase agreements.