I forwarded your response on dividend Safety to the source who recommended DX and they provided the following response:

Thanks for writing in. I checked in with Brett and he noted that we want to look at the Comprehensive Income to Common Shareholders and compare it against what they paid out in dividends.

From the most recent earnings presentation (https://www.dynexcapital.com/investors/financial-info/financial-results), it was $162M of comprehensive income compared to $71M of dividends paid — so easily covering the payout.

In the Oxford Club analysis, they are right — there have been challenging times for mREITs the past few years which have resulted in dividend cuts, but Brett is looking forward, not backwards — noting we have some fantastic spreads for mREITs to take advantage of.

So, he’s looking forward to more dividend growth and book value growth.

Thanks!

We contrarians know that crisis means opportunity. The spread is the engine of profit for Dynex—and the engine hasn’t run this hot since the GFC. Byron and Smriti agree: they are smartly describing this as a “generational buying opportunity” in mortgage-related investments.

Mortgage rates have been coming down all year. They topped above 7%, and have since steadily declined, now below 6.2%. With each tick lower the mortgage market is being unlocked and Dynex’s portfolio becomes more profitable.

The decline will continue because the administration has made lower mortgage rates a priority. Treasury Secretary Scott Bessent is obsessed with moving long-term rates lower and lower. Let’s not fight the Treasury!

Dynex loaded up on cheap “agency” mortgage-backed securities when spreads were peaking. These are government-guaranteed bonds backed by Fannie Mae and Freddie Mac. No subprime surprises or commercial property problems here. Just interest-rate math done right.

The company owns $14.28 billion of these securities. Its “exploit the spread” playbook is simple: borrow short (at lower short-term rates), lend long (at higher long-term rates) and hedge intelligently (because while trends may be strong, near-term volatility can upset the apple cart). As spreads widen, cash flow surges—as well as book value, which drive the price:
 
Dynex’s Book Value Gains are Dynamitehttps://contrarianoutlook.com/wp-content/uploads/2025/11/image2-3.jpg

Dynex’s distributable income covers its fantastic 15.3% payout. Management hasn’t been shy about sharing the mortgage wealth. The monthly dividend climbed from $0.13 to $0.15 in mid-2024, then again to $0.17 this year. That’s confidence.
 
The Monthly Divvie is Rollinghttps://contrarianoutlook.com/wp-content/uploads/2025/11/image5.png

And Dynex continues to play offense. It grew the portfolio 10% quarter-over-quarter and over 50% year-to-date.

If book value merely holds, the yield alone delivers 15% over the next year, payable in cold hard cash. If spreads tighten and book value rises, upside potential grows past 20%+.

This is the setup we second-level investors live for: wide spreads, monthly pay, disciplined management and an upside catalyst the crowd is sleeping on.
 
Action to Take: Buy Dynex Capital (DX) up to $14.00 per share.