Snag This Bargain 12.3% Yield Dividend Stock Even Cheaper Than Director Salcetti Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on May 28, Dynex Capital, Inc.'s Director, Robert A. Salcetti, invested $42,680.00 into 5,500 shares of DX, for a cost per share of $7.76. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Thursday, bargain hunters could buy shares of Dynex Capital, Inc. ( DX) and achieve a cost basis even cheaper than Salcetti, with shares changing hands as low as $7.75 per share. Dynex Capital, Inc. shares are currently trading down about 0.1% on the day. The chart below shows the one year performance of DX shares, versus its 200 day moving average:

Dynex Capital, Inc. Chart

Looking at the chart above, DX's low point in its 52 week range is $7.65 per share, with $8.87 as the 52 week high point — that compares with a last trade of $7.77. By comparison, below is a table showing the prices at which DX insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/28/2015 Robert A. Salcetti Director 5,500 $7.76 $42,680.00

The current annualized dividend paid by Dynex Capital, Inc. is $0.96/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 07/01/2015. Below is a long-term dividend history chart for DX, which can be of good help in judging whether the most recent dividend with approx. 12.3% annualized yield is likely to continue.

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