Keefe Bruyette Reaffirms Bullish Agency REIT Stance, Raises Dynex (DX) Target

Dynex Capital, Inc. (NYSE:DX) is included among the 13 Highest Paying Monthly Dividend Stocks to Buy.

On December 18, Keefe Bruyette raised its price target on Dynex Capital, Inc. (NYSE:DX) to $14.50 from $14 and kept an Outperform rating. The firm said it remains most constructive on agency MBS REITs heading into 2026.

Dynex Capital, Inc. (NYSE:DX) stands out for its dividend. The stock yields about 14.87%, which is unusually high. The payout hasn’t been perfectly smooth over time, but the company has paid dividends consistently since 2008. For income-focused investors, that kind of track record matters. With a yield this large, some fluctuation comes with the territory.

Dynex Capital, Inc. (NYSE:DX) has climbed more than 9% since the start of the year. On the Q3 2025 earnings call, management pointed out that in the last 3 years, its shareholders have seen returns of nearly 72% with dividends reinvested in Dynex. The company reported a total economic return of 10.3% for the quarter and 11.5% year to date. Management stressed disciplined execution in what remains a tricky market.

Dynex’s common equity market cap has now topped $1.8 billion. That growth reflects new capital raised and stronger investor confidence. During the quarter, the company raised $254 million, bringing the year-to-date total to $776 million. The portfolio has grown about 10% since the end of Q2. Liquidity also remains solid. At quarter’s end, Dynex reported more than $1 billion in liquidity, representing over half of total equity.

Dynex Capital, Inc. (NYSE:DX) is a mortgage REIT with a portfolio focused largely on residential mortgage-backed securities.

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