| This year, I expect net interest income to rise significantly to $94.5 million. However, dividends paid are still forecast to be substantially higher at $133.2 million. The dividend track record isn't great either. Though Dynex has raised the monthly dividend twice in the past year from $0.13 per share to $0.17, it is still well below where it was 10 years ago. At the time, Dynex paid a quarterly dividend of $0.72, which is 41% more than the current monthly dividend extrapolated to a quarterly dividend ($0.17 per month equals $0.51 per quarter). That $0.72 per share dividend in 2015 was cut to $0.63 in early 2016, and the company lowered the dividend again in 2017 to $0.54. Two years later, Dynex began paying a monthly dividend, reducing it again to $0.15 ($0.45 quarterly) in mid-2019 and once more to $0.13 ($0.39 quarterly) in 2020. So we have a stock that can't afford its dividend and has cut the payout four times in the past 10 years. Dynex Capital will very likely cut its dividend again soon. The dividend is not safe. Dividend Safety Rating: F What stock would you like me to analyze next? Click the button below to leave the ticker(s) in the comments section, and then check back each week to see if I wrote about your stock. I hope you have a fantastic and restful Thanksgiving. Good investing, Marc |
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