Monitor the use of proceeds for Agency MBS acquisitions, which could signal portfolio growth. The 9.375% dividend rate is high for a REIT preferred, suggesting the company is paying up for capital — watch for any impact on common dividend coverage or leverage ratios in the next quarterly report.
Price Chart
Executive Summary
Dynex Capital priced a public offering of 4,800,000 shares of 9.375% Series D Fixed-Rate Cumulative Redeemable Preferred Stock at $25.00 per share, for expected gross proceeds of $120 million. Net proceeds of approximately $116.2 million will be used to finance the acquisition of Agency and other investment securities and for general corporate purposes. The offering follows a 424B5 filing from the prior day finalizing the terms, and the preferred shares are expected to list on the NYSE under the symbol DXPRD.
Key Facts
- Offering of 4,800,000 shares of 9.375% Series D Preferred Stock at $25.00 per share
- Expected gross proceeds of $120 million; net proceeds ~$116.2 million
- Underwriters have a 30-day option to purchase up to an additional 720,000 shares
- Proceeds to finance acquisition of Agency and other investment securities and for general corporate purposes
- Expected closing date: September 29, 2026
- Preferred stock expected to list on NYSE under symbol DXPRD
- Dividend rate of 9.375% per annum ($2.34375 per share per year), payable quarterly
- First dividend payment of $0.69010 per share on January 15, 2027
Financial Impact
Gross proceeds of $120 million; net proceeds of approximately $116.2 million before expenses
Risk Factors
- High 9.375% dividend rate on preferred stock increases fixed charges
- Dilution to common equity if preferred shares are converted upon a change of control
- Proceeds deployed into Agency MBS may not yield sufficient spread to cover the 9.375% preferred dividend
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000826675-26-000104 |
| Exhibit: exhibit991preferredofferin.htm | 0000826675-26-000104 |
| Document: dx-20260922.htm | 0000826675-26-000104 |
| Document: 0000826675-26-000104-index-headers.html | 0000826675-26-000104 |
| Document: 0000826675-26-000104-index.html | 0000826675-26-000104 |
| Document: 0000826675-26-000104.txt | 0000826675-26-000104 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Insider Cluster | $11.05 $10.92 | ▼ −1.18% | ▼ −0.65% | $10.89 (−1.45%) |
Oct 20, 2026 6d ago | Insider Cluster | $11.05 $11.05 | · 0.00% | ▲ +1.18% | $10.89 (−1.45%) |
Oct 19, 2026 7d ago | 8-K | $10.56 $10.96 | ▼ −3.79% | ▼ −3.45% | $10.89 (−3.13%) |
Sep 25, 2026 4w ago | 8-K | $11.33 $11.39 | ▲ +0.53% | ▲ +0.71% | $10.89 (−3.88%) |
Sep 23, 2026 4w ago | 424B5 | $11.34 $11.34 | · 0.00% | ▼ −0.54% | $10.89 (−3.97%) |
Sep 22, 2026 4w ago | 424B5 | $12.10 $11.73 | ▼ −3.06% | ▼ −2.34% | $10.89 (−10.00%) |
Aug 9, 2026 11w ago | Institutional Cluster | $12.78 $12.93 | ▲ +1.17% | ▲ +1.49% | $10.89 (−14.79%) |
Jul 20, 2026 14w ago | 8-K | $13.12 $13.02 | ▼ −0.76% | ▼ −1.60% | $10.89 (−17.00%) |
Jun 11, 2026 19w ago | Institutional Cluster | $12.90 $12.93 | ▲ +0.23% | ▼ −0.31% | $10.89 (−15.58%) |
May 22, 2026 22w ago | 8-K | $26.11 $26.00 | ▼ −0.40% | ▼ −0.42% | $10.89 (−58.28%) |
US Market Status
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