10 Highest Paying Monthly Dividend Stocks

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

Dividend Yield as of August 16: 12.76%

With a dividend yield of 12.76% as of August 16, Dynex Capital, Inc. (NYSE:DX) ranks seventh on our list of the best dividend stocks. The real estate investment trust company mainly invests in mortgage-backed securities and other various real estate assets. The stock is slightly down by nearly 1.7% since the start of 2024, reflecting its ongoing recovery from the difficulties encountered during 2022-2023. These challenges were driven by high short-term interest rates, which raised interest expenses and exerted pressure on the trust’s book value. However, this situation is expected to shift as mortgage REITs are likely to become more attractive as sources of passive income in a lower interest rate environment. The Federal Reserve is anticipated to reduce the fed funds rate soon, with a meeting scheduled for September 17-18, 2024, where they will evaluate this potential adjustment.

Dynex Capital, Inc. (NYSE:DX)’s initial signs of recovery were evident in its second-quarter earnings. The company reported a reduced loss available for distribution in Q2 2024, although it still experienced a total economic loss for the quarter due to a decrease in book value caused by widening spreads between agency RMBS and US Treasuries. It raised capital at advantageous levels and is positioned to take advantage of the unusually wide spreads in the mortgage market. In addition, Dynex Capital, Inc. (NYSE:DX) continued to follow its strategic plan, emphasizing the provision of steady dividend income through prudent capital management. It successfully obtained funding at favorable rates. The company also made several important decisions to leverage its human capital, recognizing its importance for future success.

Dynex Capital, Inc. (NYSE:DX), one of the best dividend stocks on our list, has been making regular dividend payments to shareholders since 2008. Its monthly payout currently comes in at $0.13 per share. The company’s cash reserves have been consistently growing over the quarters. In the most recent quarter, it had more than $286 million available in cash and cash equivalents, up from $120 million six months ago.