Dynex Capital, Inc. (NYSE:DX) is included among 10 Best Monthly Dividend Stocks to Buy Now.
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On January 9, BTIG named Dynex Capital, Inc. (NYSE:DX) as its top pick to quickly benefit from President Trump’s directive for government-sponsored enterprises to buy up to $200B in mortgage-backed securities, a move aimed at bringing mortgage rates down. BTIG said tighter agency MBS spreads could lift Dynex’s mark-to-market net asset value by about 8%, assuming spreads narrow by 20 basis points. That tightening had already taken place by early January 9. The firm has a Buy rating on the stock and a $16 price target.
Dynex reported its fourth-quarter 2025 results on January 26. Book value per common share rose to $13.45 at year-end, up from $12.67 at the end of the third quarter. During the quarter, the company raised $393 million in equity through at-the-market common stock issuances, bringing total capital raised in 2025 to $1.2 billion after issuance costs.
Investment activity picked up as well. Dynex bought $3 billion of Agency RMBS and $284 million of Agency CMBS in the fourth quarter. For the full year, purchases totaled $8.2 billion in Agency RMBS and $1.2 billion in Agency CMBS. The average balance of interest-earning assets climbed 58% over the course of 2025. Liquidity stood at $1.4 billion as of December 31, 2025.
Dynex reported a strong performance in 2025, delivering a 29.4% total shareholder return and a 67% total return over the past decade. Management attributed the results to disciplined execution and a consistent focus on risk management. Over the last 13 months, the company’s market capitalization nearly tripled as it raised and deployed capital into what it viewed as attractive opportunities.
Dynex Capital, Inc. (NYSE:DX) is an internally managed REIT with a long history of paying attractive dividends. The company focuses on disciplined risk management while investing in high-quality mortgage assets tied to U.S. residential and commercial real estate.
While we acknowledge the potential of DX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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While we acknowledge the potential of DX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DX and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
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