DX +0.30% NVDA +2.84% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Dynex Capital's (NYSE: DX) 19.4% forward dividend yield is one of the highest among mortgage real estate investment trusts (REITs). It also makes monthly rather than quarterly payouts.
Does this make it one of the best monthly dividend stocks?
Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
I wouldn't go that far. Given its payout ratio exceeding 100% and a declining book value, I wouldn't bank on Dynex as a "set-and-forget" way to generate double-digit returns.
Based on Dynex's recent $10.50-per-share stock price, $10,000 buys you around 952 shares. Based on its current monthly dividend of $0.17 per share, this position would generate $161.84 in monthly income, or $1,942.08 annually.
Dynex has paid a monthly dividend of $0.17 per share for over a year; not only that, the mortgage REIT raised its dividend twice in a little over two years, from $0.13 to $0.17 per share. That said, look far enough back, and you'll see a steady history of dividend cuts, book value erosion, and stock price declines.
As with other REITs specializing in mortgage-backed securities, the rising-rate environment has negatively affected Dynex's performance. For Q3 2026, Dynex reported a negative total economic return, losing $1.48 per share, or 11.5% of its beginning book value, during the quarter. Although these losses were due to net changes in the fair value of Dynex's portfolio, back these out and you'll see that its adjusted earnings per share (earnings available for distribution (EAD)) of $0.38 last quarter were not enough to cover the $0.51 in per-share dividends paid.
That's not to say that dividend cuts are imminent. Dynex has realized gains from tax hedges, not included in EAD. These total around $98 million for the current fiscal year. These could be used to help cover the shortfall.
However, if rates keep climbing and further devalue Dynex's portfolio, poor performance may persist. Considering these caveats, skipping Dynex and its nearly 20% forward yield seems like the better move.
Before you buy stock in Dynex Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dynex Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $348,060!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,067,492!*
Now, it's worth noting Stock Advisor's total average return is 849% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of November 13, 2026.
Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Here's How Much $10,000 in Dynex Capital Stock Pays You Every Month was originally published by The Motley Fool
