10 Small-Cap Dividend Stocks Drive Year-to-Date Gains

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

Dividend yield: 14.51%

Dividend payout ratio: 107.38%

Ex-Dividend Date: February 24, 2025

Number of Hedge Funds: 14

Dynex Capital, Inc. (NYSE:DX) has seen an 11.15% uptick in value this year, bringing its market cap to $1.19 billion as of February 24, 2025.

The real estate investment trust company based in Virginia announced an increase in its monthly dividend from $0.15 to $0.17 per share for March 2025. According to Co-CEO and President of the company, Smriti L. Popenoe,

“This increase is supported by the favorable investing environment and our confidence in the Company’s ability to generate attractive returns.”

In addition to generating $332 million in equity capital through at-the-market common stock issuances, Dynex Capital, Inc. (NYSE:DX) saw a 36% increase in its average balance of interest-earning assets. Also, the lower interest expenses on repurchase agreement borrowings resulting from the Federal Reserve’s recent interest rate cuts helped the company increase the ordinary shareholders’ income for the fourth quarter.

Dynex Capital, Inc. (NYSE:DX) offers a high dividend yield of 14.51%, covered by a payout ratio of 107.38%, indicating the possibility of dividend finance through debt. Fourteen hedge fund portfolios in the Insider Monkey database are holding stakes in the company, as of Q4 2024. It suggests a strong institutional interest. Investors who have purchased stocks on or before February 24, 2025, will receive dividend payments on April 1, 2025.

Overall Dynex Capital, Inc. (NYSE:DX) ranks first on our list of 10 small-cap dividend stocks that drive year-to-date gains. While we acknowledge the potential for DX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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