Dynex Capital, Inc. (NYSE:DX) to Issue $0.17 Monthly Dividend

Key Points

• Dynex Capital, Inc. has declared a monthly dividend of $0.17 per share, to be paid on November 3rd to stockholders of record on October 23rd, representing an annual yield of 15.5%.
• The company is facing a payout ratio of 133.3%, indicating reliance on its balance sheet to cover dividend payments, as projected earnings may not fully support future dividends.
• Recent analyst ratings suggest a generally cautious outlook for Dynex Capital, with a consensus target price of $13.08 and mixed ratings among research firms regarding buy or hold recommendations.

Dynex Capital, Inc. (NYSE:DX - Get Free Report) declared a monthly dividend on Monday, October 13th. Stockholders of record on Thursday, October 23rd will be paid a dividend of 0.17 per share by the real estate investment trust on Monday, November 3rd. This represents a c) annualized dividend and a dividend yield of 15.5%. The ex-dividend date of this dividend is Thursday, October 23rd.

Dynex Capital has a payout ratio of 133.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Dynex Capital to earn $1.97 per share next year, which means the company may not be able to cover its $2.04 annual dividend with an expected future payout ratio of 103.6%.

Dynex Capital Trading Up 1.3%

Shares of Dynex Capital stock opened at $13.16 on Tuesday. The stock has a market cap of $1.71 billion, a P/E ratio of 16.87 and a beta of 0.92. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.30 and a quick ratio of 1.30. The stock's 50 day simple moving average is $12.52 and its 200-day simple moving average is $12.35. Dynex Capital has a 1-year low of $10.79 and a 1-year high of $14.52.

Dynex Capital (NYSE:DX - Get Free Report) last released its quarterly earnings results on Monday, July 21st. The real estate investment trust reported $0.22 EPS for the quarter, missing the consensus estimate of $0.49 by ($0.27). The firm had revenue of $23.13 million for the quarter, compared to analysts' expectations of $21.20 million. Dynex Capital had a net margin of 17.27% and a return on equity of 4.19%. Analysts predict that Dynex Capital will post 1.94 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research firms have recently commented on DX. UBS Group set a $13.25 price target on shares of Dynex Capital and gave the company a "neutral" rating in a research report on Wednesday, October 8th. Keefe, Bruyette & Woods lifted their price target on shares of Dynex Capital from $12.50 to $13.00 and gave the company an "outperform" rating in a research report on Thursday, July 10th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Dynex Capital in a research report on Wednesday, October 8th. Finally, Jones Trading boosted their target price on Dynex Capital from $12.50 to $13.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $13.08.

About Dynex Capital

Dynex Capital, Inc, a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.