10 Extreme Dividend Stocks to Invest in Now

4. Dynex Capital, Inc. (NYSE:DX)

Dividend Yield as of January 23: 14.22%

Dynex Capital, Inc. (NYSE:DX) ranks fourth on our list of extreme dividend stocks. The American real estate investment trust company mainly invests in mortgage-backed securities and other various real estate assets. In the past 12 months, the stock has surged modestly by 1.52% as it is still recovering from the challenges it faced during 2022-2023. The difficulties arose from elevated short-term interest rates, which increased interest expenses and put a strain on the trust’s book value. However, this dynamic is anticipated to change, as mortgage REITs are expected to gain appeal as sources of passive income in a lower interest rate climate.

In the third quarter of 2024, Dynex Capital, Inc. (NYSE:DX) reported an economic return of 7.1% for the third quarter of 2024, emphasizing the expertise and experience it considers essential for successfully navigating the current market conditions. The company ended the quarter with nearly $270 million available in cash and cash equivalents, up from $120 million at the end of December 2023. Its total assets amounted to over $7.8 billion.

Though Dynex Capital, Inc. (NYSE:DX) has a high dividend yield of 14.22%, as of January 23, the company’s dividend policy remained consistent over the years. It has been paying regular dividends to shareholders since 2008, which makes DX one of the best dividend stocks on our list.

Dynex Capital, Inc. (NYSE:DX) was included in 14 hedge fund portfolios at the end of Q3 2024, up from 13 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds are worth over $59 million. With over 1.7 million shares, Millennium Management was the company’s leading stakeholder in Q3.