Ellington Credit Company (NYSE:EARN) Shares to Pay Monthly Dividend of $0.08

Key Points

• Ellington Credit declared a monthly dividend of $0.08 per share, payable November 30 to shareholders of record October 30. The annualized dividend is $0.96, representing a 27.7% yield.
• The dividend has an 88.9% payout ratio, indicating it is currently covered by earnings but could face pressure if profitability declines. The company recently reported quarterly EPS of $0.15, below the $0.20 analyst consensus, while revenue also fell short of estimates.
• Shares recently traded at $3.47, near their 52-week low of $3.29. Analysts maintain a “Moderate Buy” consensus rating with a $5.50 average price target, though Piper Sandler reduced its target to $5.00.

Ellington Credit Company (NYSE:EARN - Get Free Report) declared a monthly dividend on Wednesday, October 7th. Investors of record on Friday, October 30th will be paid a dividend of $0.08 per share by the real estate investment trust on Monday, November 30th. This represents a $0.96 dividend on an annualized basis and a yield of 27.7%. The ex-dividend date is Friday, October 30th.

Ellington Credit has decreased its dividend by an average of 0.0%annually over the last three years. Ellington Credit has a payout ratio of 88.9% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline.

Ellington Credit Stock Performance

Shares of NYSE:EARN traded down $0.10 during trading on Wednesday, hitting $3.47. The company's stock had a trading volume of 1,074,908 shares, compared to its average volume of 436,289. Ellington Credit has a fifty-two week low of $3.29 and a fifty-two week high of $5.72. The company has a market capitalization of $132.34 million, a PE ratio of -3.54 and a beta of 1.32. The business has a 50 day moving average price of $4.29 and a two-hundred day moving average price of $4.48.

Ellington Credit (NYSE:EARN - Get Free Report) last issued its earnings results on Wednesday, August 12th. The real estate investment trust reported $0.15 EPS for the quarter, missing analysts' consensus estimates of $0.20 by ($0.05). The company had revenue of $6.08 million for the quarter, compared to analysts' expectations of $10.57 million.

Analyst Ratings Changes

Separately, Piper Sandler lowered their price objective on shares of Ellington Credit from $5.25 to $5.00 and set an "overweight" rating on the stock in a research report on Monday, July 13th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $5.50.

About Ellington Credit

Ellington Credit Company NYSE: EARN is a real estate investment trust focused on the residential mortgage market. The company invests in residential mortgage assets, including residential mortgage-backed securities and residential mortgage loans, with an emphasis on assets that generate income from housing-related credit and financing activities.

Its portfolio may include agency and non-agency mortgage-backed securities, as well as other residential mortgage investments. Agency securities are generally backed or guaranteed by U.S.

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