3. International Seaways, Inc. (NYSE:INSW)
Number of Hedge Fund Holders: 27
Dividend Yield as of October 23: 18.23%
International Seaways, Inc. (NYSE:INSW) owns and operates oil tankers that transport crude oil and refined petroleum products worldwide. Its high dividend yield reflects the strong cash flows generated during favorable tanker-market conditions, rather than a fixed income stream.
In the second quarter of 2026, the company’s time charter equivalent revenue rose 130% year over year to $434.2 million as average daily tanker rates increased sharply. The company follows a variable dividend policy, generally distributing at least 85% of adjusted net income to shareholders in strong periods. It paid $6.70 per share in dividends declared or paid during 2026 through its August announcement, including a $5.05-per-share payout. The supplemental portion can shrink when tanker earnings weaken, so investors should not treat the current yield as guaranteed.
Hedge fund activity also signals interest in the company’s cash-generation potential. Insider Monkey’s visible holdings data shows CastleKnight Management increased its position by 103% and AQR Capital Management by 16%, while Hosking Partners reduced its stake by 12%. These contrasting moves suggest selective interest, not universal confidence. The investment case rests on strong tanker rates, cash returns, and fleet value, but earnings remain sensitive to shipping demand and geopolitical disruptions.
Find what other shipping stocks analysts are bullish on: 10 Best Shipping Stocks to Buy According to Analysts
2. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 28
Dividend Yield as of October 23: 16.29%
AGNC Investment Corp. (NASDAQ:AGNC) invests mainly in mortgage-backed securities guaranteed by US government agencies. It borrows money to buy these securities and profits from the difference between the interest earned on its portfolio and its funding costs.
AGNC’s high dividend yield reflects its monthly payout and the risks attached to its leveraged portfolio. In Q2 2026, it used 7.4 times leverage relative to tangible net book value at risk. Its net spread and dollar roll income fell from $0.42 per share in Q1 to $0.40 in Q2, against a quarterly dividend of $0.36. That left only $0.04 per share of coverage. AGNC declared monthly dividends of $0.12 per share during Q2. Its payout was covered by this income measure, but the narrowing margin leaves less room for further declines in earnings. Read the full analysis here.
Insider Monkey reported that 28 hedge funds held AGNC at the end of Q2 2026, down from 33 in the previous quarter, while their combined holdings fell from about $190 million to $120 million. Its latest accessible holdings data showed Millennium Management increasing its put-option position by 151%, while Citadel increased its put position by 65%. These are bearish or hedging trades, not straightforward evidence that the funds expect the stock to rise.
1. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 29
Dividend Yield as of October 23: 18.68%
Dynex Capital, Inc. (NYSE:DX) is a mortgage REIT that invests primarily in agency mortgage-backed securities, backed by U.S. government-sponsored entities. It finances its purchases of these securities through borrowing and uses interest rate derivatives to hedge some of the risk. The high dividend yield is a reflection of the income nature of its leveraged portfolio and also of the risks of the borrowings, interest rate movements, and the market value of its assets. Read the company’s valuation analysis here.
Dynex currently has a dividend yield of nearly 19% because its common dividend is so large in relation to its share price. Mortgage REIT earnings are very sensitive to interest rates and financing costs. Q2 2026 saw Dynex generate $94.3 million in economic net interest income, up from $81.0m in Q1 as the portfolio grew, but its net interest spread was only 1.17%, which again highlights the fragility of its returns and the fact that they are so dependent on a very narrow spread between asset yields and the cost of funds.
Insider Monkey’s Q2 2026 data shows that 29 hedge funds held stakes in DX. Millennium Management upped its Dynex Capital position by 155% to 7.02 million shares, and Marshall Wace LLP increased its position by a massive 2919% to 6.41 million shares. Both are significant increases and suggest they saw an opportunity in the mortgage REIT, either in terms of income or the interest rate outlook. The filings themselves don’t state why they’ve made these purchases.
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