Zacks Industry Outlook Annaly Capital Management, AG Mortgage Investment Trust and Dynex Capital
Annaly Capital Management, AG Mortgage Investment Trust and Dynex Capital have been highlighted in this Industry Outlook article.
3 mREIT Stock to Watch Amid Ongoing Volatile Industry Trends
While volatile mortgage rates will likely hurt Zacks REIT and Equity Trust industry, companies like NLY, MITT and DX are well-poised to navigate the challenges.
Seeking +13% Yields: Dynex
Income should pour into your account, not dribble in. We take a three-legged approach to mREIT investing for income. Today, we dive into the third leg.
Preferreds Weekly Review: Agency mREITs Deliver Good Results
We take a look at the action in preferreds and baby bonds through the last week of January and highlight some of the key themes we are watching. Preferred stocks saw mixed performance with Energy and Utilities sectors gaining; January's gain nearly offset December's losses. Agency mortgage REITs like AGNC and Annaly reported earnings that are broadly positive for preferreds shareholders.
Dynex Capital: Staying Positive For Q1
Dynex Capital, Inc. delivered strong Q4 results, beating revenue and EPS estimates, despite a slight decline in book value per share. Elevated interest rates and wide mortgage spreads are expected to persist, potentially benefiting Dynex's income and reducing refinancing risks. Dynex's portfolio strategy focuses on high coupon, government-insured agency products, likely providing an asymmetrical risk-return tradeoff.
Dynex Capital, Inc. (DX) Q4 2024 Earnings Call Transcript
Dynex Capital, Inc. (DX) Q4 2024 Earnings Call Transcript
Dynex Capital (DX) Q4 Earnings and Revenues Lag Estimates
Dynex Capital (DX) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to loss of $0.24 per share a year ago.
Dynex Capital: Re-Rating Catalyst In 2025
Dynex Capital is poised to benefit from anticipated interest rate cuts in 2025, despite the Fed's recent hawkish stance and inflation uptick. The stock is currently selling at a 4% discount to book value, offering substantial value for passive income investors with a stable 13% dividend yield. Lower interest rates should improve DX's negative net interest spread, enhancing profitability and potentially leading to a higher valuation.
Caveat Emptor: 2 REITs To Avoid
Caveat Emptor series aims to help investors avoid “sucker yields,” “value traps,” and “ugly ducklings” by highlighting risks and conducting due diligence. Dynex Capital is rated a sell due to poor operational performance, negative EPS, and unsustainable dividend payout ratios. Vornado Realty Trust is rated a sell due to declining AFFO, high geographic concentration risks, and a history of value erosion.
Dynex Capital: A Tactical Play In Motion
Dynex Capital Inc.'s forward dividend yield and a changing U.S. inflation outlook make a strong case for a tactical opportunity. Shifting to specified pools to secure certainty might de-risk the vehicle. Additionally, a more desirable short-term liquidity market fuels an upbeat argument. Dynex's common stock trades below book value, and its preferred stock doesn't seem overly demanding, reducing the risk of Dynex's common shares being 'toxic waste.'
Dynex Capital Series C: Strong Risk/Reward For This Preferred Stock
Dynex Capital Series C preferred stock offers a compelling income opportunity with a 6.9% stripped yield, stepping up to 9.7% if not redeemed by Apr-2025. The stock benefits from a nearly 100% Agency MBS portfolio and a 9.2x equity/preferreds coverage, making it a lower-risk, high-yield investment. DX's proactive risk management and equity issuance behavior enhance preferreds' safety, outperforming common shares with lower volatility.
Dynex Capital Now Offers A Consistent High Yield Dividend Paid Monthly From Real Estate Mortgage Assets
As a retired income investor, I focus on high-yield distributions, particularly from REITs, which offer diversification and inflation hedging but are sensitive to interest rates. Despite the real estate sector's poor performance over the past three years, Dynex Capital is now a compelling buy due to its strong Q3 earnings, increased dividend, and strategic positioning. Dynex's Q3 results show improved performance, with increased book value, reduced leverage, and higher comprehensive income, driven by strategic capital management and favorable market conditions.
