DX-PC

Dynex Capital is a smaller mortgage REIT that invests in agency and non-agency mortgage-backed securities. Its Series C preferred offers a high yield that reflects both the leverage inherent in the mortgage REIT model and Dynex's smaller scale compared to Annaly and AGNC.

What distinguishes Dynex is its management team's willingness to actively manage interest rate risk and adjust the portfolio composition based on their macroeconomic outlook. CEO Byron Boston has decades of experience in mortgage markets and has navigated multiple interest rate cycles.

DX-PC carries more risk than the larger mortgage REIT preferreds due to Dynex's smaller asset base and exposure to non-agency securities (which carry credit risk in addition to interest rate risk). However, the yield compensates for this additional risk, and the preferred dividend has been maintained consistently.