Terms

Convertible

No

Callable

No

Shares Offered

4,450,000

Prospectus Summary

This filing is a Dividend Reinvestment and Share Purchase Plan (DRIP) prospectus filed by Dynex Capital, Inc. (NYSE: DX), an internally managed mortgage REIT. It covers up to 4,450,000 authorized but unissued shares of common stock (par value $0.01) offered to existing shareholders and new investors for dividend reinvestment and optional cash purchases. This is NOT a preferred stock offering; it is a common stock plan with no fixed coupon, liquidation preference, or call provisions. Common stock dividends are entirely discretionary and non-cumulative by nature. As common stock, these shares sit at the bottom of Dynex Capital's capital structure — junior to all debt obligations, junior to the company's 8.50% Series A Cumulative Redeemable Preferred Stock (NYSE: DXPRA) and 7.625% Series B Cumulative Redeemable Preferred Stock (NYSE: DXPRB), and junior to any future preferred or debt issuances. Upon liquidation, debt holders and preferred stockholders are paid before common stockholders receive any distribution. There are no regulatory capital provisions applicable to this common stock offering. Common stock dividends are paid at the board's discretion with no guaranteed amount or schedule; as a REIT, Dynex must distribute at least 90% of taxable income annually. DRIP participants reinvest dividends at prevailing market prices with a discretionary discount of 0%–3%. Dividends received are taxable as ordinary REIT income, capital gain dividends, or return of capital depending on earnings and profits; they generally do not qualify for the preferential qualified dividend income (QDI) rate applicable to C-corporation dividends, and the DRD is not available to corporate holders for REIT distributions. Any discount received on reinvested shares creates additional taxable income without corresponding cash.

Summarized from the SEC prospectus filing.

Distribution History

Other Preferreds from Dynex Capital Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 52 (Average)