5 Monthly Dividend Stocks with Over 5% Yield

In this article, we discuss 5 monthly dividend stocks with over 5% yield. If you want to see more stocks in this selection, check out 10 Monthly Dividend Stocks with Over 5% Yield. 

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

Dividend Yield as of February 3: 10.67%

Number of Hedge Fund Holders: 9

Dynex Capital, Inc. (NYSE:DX) was incorporated in 1987 and is headquartered in Glen Allen, Virginia. It is a mortgage real estate investment trust that invests in mortgage-backed securities (MBS) in the United States using leverage. The company invests in both agency and non-agency MBS, including residential MBS, commercial MBS, and CMBS interest-only securities. Dynex Capital, Inc. (NYSE:DX) paid a $0.13 per share monthly dividend to shareholders on February 1. The dividend yield on February 3 came in at 10.67%. It is one of the best monthly dividend stocks to invest in. 

On January 9, Credit Suisse analyst Douglas Harter upgraded Dynex Capital, Inc. (NYSE:DX) to Outperform from Neutral with a price target of $15.50, up from $13.50. The analyst believes the current economic environment is favorable for agency-focused mortgage REITs due to wide spreads and a downturn in housing that is likely to prevent credit spreads from tightening. He views Dynex Capital, Inc. (NYSE:DX) as the best option among agency-focused mREITs to benefit from potential tightening of MBS spreads.

According to Insider Monkey’s data, 9 hedge funds were bullish on Dynex Capital, Inc. (NYSE:DX) at the end of September 2022, compared to 13 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is the largest stakeholder of the company, with 1.46 million shares worth $17 million.