Dynex Capital (DX) S-3 Shelf registration

Exhibit 12.1

DYNEX CAPITAL, INC.

Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

	Year Ended December 31,
(Amounts in thousands, except ratios)	2010			2009			2008			2007			2006
Fixed charges
Interest expense	$	14,356		$	14,671		$	19,106		$	20,095		$	39,362
Preferred dividend requirements		3,061			4,010			4,010			4,010			4,044
Total	$	17,417		$	18,681		$	23,116		$	24,105		$	43,406
Earnings
Income from continuing operations	$	29,472		$	17,581		$	15,121		$	8,899		$	4,909
Add:
Fixed charges, excluding preferred dividend requirements		14,356			14,671			19,106			20,095			39,362
Distributed income of equity method investees		—			—			—			1,125			—
Less:
Equity in income (loss) of equity method investees		—			2,400			(5,733	)		709			(852	)
Total	$	43,828		$	29,852		$	39,960		$	29,410		$	45,123
Ratio of earnings to fixed charges:		3.05	x		2.03	x		2.09	x		1.46	x		1.15	x
Ratio of earnings to fixed charges and preferred stock dividends		2.52	x		1.60	x		1.73	x		1.22	x		1.04	x