12 Best Dividend Stocks Under $30

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

Share Price as of the Close of January 30: $13.15

Dynex Capital, Inc. (NYSE:DX) is an American real estate investment trust company that mainly invests in mortgage-backed securities and other various real estate assets. For the fourth quarter of 2024, the company reported a total economic return of $0.13 per common share, representing 1.0% of its beginning book value, while the full-year return stood at $0.99 per share, or 7.4% of the starting book value. During the quarter, it raised $64.4 million in equity capital through at-the-market (ATM) common stock issuances, bringing the total capital raised for the year, net of issuance costs, to $332.0 million.

Dynex Capital, Inc. (NYSE:DX) has surged by nearly 5% in the past 12 months. The company is still in the process of recovering from the challenges experienced between 2022 and 2023. These difficulties stemmed from high short-term interest rates, which led to increased interest expenses and pressured the trust’s book value. However, this trend is expected to shift, as mortgage REITs are likely to become more attractive for passive income investors in a lower interest rate environment.

In addition, Dynex Capital, Inc. (NYSE:DX) has a strong cash position. The company ended the quarter with over $377 million available in cash and cash equivalents. It pays a monthly dividend of $0.15 per share and has an attractive dividend yield of 13.6%, as of January 30. It is one of the best dividend stocks on our list as the company has paid regular dividends to shareholders since 2008.

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.