Dynex CEO: Urbanization Trend in U.S. Presents Major Opportunity

Byron Boston, CEO of Dynex Capital (DX) - Get Report said the trend toward urbanization in the U.S. presents a major opportunity for the real estate investment trust. Boston said the firm puts into play two key dynamics that are benefiting companies like his: the desire for yield coupled with the need for private capital within the housing sector. And because a REIT's fiduciary responsibility is to generate returns but is not taxed at the corporate level it offers an above average dividend yield. Right now, Dynex is generating yields of around 12 percent. An increase in interest rates this year could trim Dynex's net interest margins but yields should remain attractive. Over the next five to 10 years Byron said above average dividend yields that come from investing in real estate assets will continue to be impressive. TheStreet's Rhonda Schaffler has details from the Milken Institute's Global Conference in Los Angeles.