Dynex Capital, Inc., (DX) together with its subsidiaries, operates as a mortgage real estate investment trust.. The company primarily invests in mortgage-backed securities issued or guaranteed by a federally chartered corporation, commercial mortgage-backed securities, and non-agency residential mortgage-backed securities, as well as securitized residential and commercial mortgage loans. It finances its investments through a combination of repurchase agreements, securitization financing, and equity capital. The company has elected to be treated as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax, provided it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1987 and is based in Glen Allen, Virginia.
Factors to consider:
Barchart technical indicators:
- 96% Barchart technical buy signal
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 17 new highs and up 14.27% in the last month
- Relative Strength Index 66.68%
- Barchart computes a technical support level at 9.54
- Recently traded at 9.61 woth a 50 day moving average of 8.82
Fundamental factors:
- 7 Wall Street brokerages firms follow this stock and analysts predict income will increase by 5% a year for at least the next 5 years
- Analysts have released 1 strong buy, 4 buy and 2 hold recommendations for their clients
- P/E ratio is only 8.75
- The dividend rate is 11.32% at today's price
General investor interest:
- I use the readers of Motley Fool to gauge individual investor interest and 86 readers are following this stock
- The general reader voted 88% that the stock will beat the market
- The more savvy All Stars also voted 88% for the same result
I think it's informative to compare the price momentum of a stock to it's competition. While DX is up 20% in the last 50 trading sessions, Capstead Mortgage (CMO) is up 12%, iStar Financial (SFI) down 11% and Redwood Trust (RWT) down 7%:
Summary: Dynex Capital (DX) looks like a good candidate for total return or income portfolios. With a P/E less than the market's and a dividend rate over 11% this looks like a winner. I'd play the 14 day turtle channel on this one:
No comments:
Post a Comment