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.

While we acknowledge the potential of DX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.