Byron Boston, CEO of Dynex Capital says the trend toward urbanization in the U.S. presents a major opportunity. The chief of the real estate investment trust says it 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. Dynex is generating yields of around 12 percent he says. Boston says 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 says above average dividend yields that come from investing in real estate assets will continue to be impressive.
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