Dynex Capital, Inc. (NYSE:DX) is included among the 10 Best Dividend Stocks Yielding at Least 7% According to Hedge Funds<\/strong>.<\/p>\n Photo by Dan Dennis on Unsplash<\/p>\n On April 20, JonesResearch analyst Jason Weaver lowered the firm\u2019s price recommendation on Dynex Capital, Inc. (NYSE:DX) to $14.75 from $15.25. It reiterated a Buy rating following the Q1 report. The firm said spread volatility is creating \u201cnear-term noise,\u201d but it also extends Dynex\u2019s runway for attractive asset deployment. Mortgage spreads widened in the back half of the quarter, though the company\u2019s hedging portfolio performed well.<\/p>\n The company reported Q1 2026 earnings on April 20. Book value was $12.60 per share at quarter-end. Chief Financial Officer Sartori said economic return for the period was negative 2.5%. This included $0.51 per share in common dividends and a $0.85 per share decline in book value. He also noted that leverage closed the quarter at 8.6x relative to total equity. At the same time, the company maintained a strong liquidity position, with $1.3 billion in cash and unencumbered securities. This represented more than 46% of total equity at the end of the quarter.<\/p>\n Dynex Capital, Inc. (NYSE:DX) operates as a financial services company and is structured as an internally managed mortgage REIT. It invests primarily in mortgage-backed securities and finances these investments mainly through repurchase agreements.<\/p>\n While we acknowledge the potential of DX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the\u00a0best short-term AI stock<\/strong>.<\/p>\n<\/div>\n<\/div>