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

Core Viewpoint - Dynex Capital, Inc. (NYSE:DX) is recognized for its high dividend yield and strong performance in the mortgage REIT sector, making it an attractive option for income-focused investors [3][4]. Group 1: Dividend and Performance - Dynex Capital offers a dividend yield of approximately 14.87%, which is significantly high and has been consistently paid since 2008, despite some fluctuations [3]. - The company has experienced a stock price increase of over 9% since the beginning of the year, with shareholders seeing nearly 72% returns over the last three years when dividends are reinvested [4]. - For Q3 2025, Dynex reported a total economic return of 10.3% for the quarter and 11.5% year-to-date, emphasizing disciplined execution in a challenging market [4]. Group 2: Financial Growth and Market Position - Dynex's common equity market capitalization has surpassed $1.8 billion, reflecting new capital raised and increased investor confidence [5]. - In the recent quarter, the company raised $254 million, bringing the total for the year to $776 million, with a portfolio growth of about 10% since the end of Q2 [5]. - At the end of the quarter, Dynex reported over $1 billion in liquidity, which constitutes more than half of its total equity [5]. Group 3: Analyst Ratings and Market Outlook - Keefe Bruyette has raised its price target for Dynex to $14.50 from $14, maintaining an Outperform rating, indicating a positive outlook for agency MBS REITs heading into 2026 [2].