Little-Known Stock Provides a 14% Yield

“Be fearful when others are greedy and greedy when others are fearful.” Those are the famous words of legendary investor Warren Buffett. But for most people, the advice is easier said than done. Whenever there’s a market downturn and people get fearful, the prevailing sentiment is to sell as much as you can, hoping to cut losses. But it’s exactly during market downturns—like the one that’s happening right now—that being greedy might actually be able to pay off. For instance, if you are an income hunter, there are now plenty of beaten-down stocks with astronomical yields.

Check out Dynex Capital Inc (NYSE:DX), a real estate investment trust (REIT) headquartered in Glen Allen, Virginia. The company was already one of the higher-yielding names in the stock market, and it pays investors monthly rather than quarterly. And the recent stock market sell-off, which led to a sizable drop in the company’s share price, has pushed its yield up to a jaw-dropping level. Right now, Dynex Capital has a monthly dividend rate of $0.15 per common share. With Dynex Capital stock trading at $12.56 apiece, its monthly payout translates to an annual dividend yield of about 14%.

Source: Income Investors

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