Ellington Financial Inc. (NYSE:EFC) Shareholders to Collect $0.13 Monthly Dividend

Key Points

• Ellington Financial declared a $0.13 monthly dividend, or $1.56 annualized, representing a 13.4% yield. Shareholders of record on October 30 will receive payment on November 30.
• The dividend is currently supported by earnings, with a 91.2% payout ratio; analysts expect that ratio to improve to 74.6% next year based on projected earnings of $2.09 per share.
• EFC shares recently traded at $11.61, near their 52-week low, while analysts maintain an average “Hold” rating and a $14.50 price target. The company’s latest quarterly earnings of $0.60 per share exceeded the $0.46 consensus estimate.

Ellington Financial Inc. (NYSE:EFC - Get Free Report) announced a monthly dividend on Wednesday, October 7th. Shareholders of record on Friday, October 30th will be given a dividend of $0.13 per share by the financial services provider on Monday, November 30th. This represents a $1.56 dividend on an annualized basis and a yield of 13.4%. The ex-dividend date is Friday, October 30th.

Ellington Financial has increased its dividend payment by an average of 0.0%per year over the last three years. Ellington Financial has a dividend payout ratio of 91.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect Ellington Financial to earn $2.09 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 74.6%.

Ellington Financial Stock Performance

Shares of NYSE:EFC traded down $0.06 during trading on Wednesday, reaching $11.61. The stock had a trading volume of 2,042,497 shares, compared to its average volume of 1,596,483. The stock has a fifty day simple moving average of $13.04 and a two-hundred day simple moving average of $13.10. The company has a quick ratio of 52.06, a current ratio of 52.06 and a debt-to-equity ratio of 10.39. Ellington Financial has a 52 week low of $11.27 and a 52 week high of $14.12. The firm has a market capitalization of $1.50 billion, a price-to-earnings ratio of 7.08 and a beta of 0.97.

Ellington Financial (NYSE:EFC - Get Free Report) last announced its earnings results on Thursday, August 6th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.14. The business had revenue of $134.11 million for the quarter, compared to analyst estimates of $114.59 million. Ellington Financial had a net margin of 52.43% and a return on equity of 16.61%. As a group, analysts anticipate that Ellington Financial will post 2.13 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Zacks Research cut Ellington Financial from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. UBS Group increased their target price on shares of Ellington Financial from $14.00 to $14.50 and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. BTIG Research downgraded shares of Ellington Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, June 17th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Ellington Financial in a research report on Tuesday, August 11th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat, Ellington Financial presently has an average rating of "Hold" and an average price target of $14.50.

About Ellington Financial

Ellington Financial Inc NYSE: EFC is a real estate investment trust that invests in a range of mortgage-related and other financial assets. Its portfolio includes residential and commercial mortgage loans, mortgage-backed securities, consumer loans and other credit-related investments.

The company focuses primarily on assets tied to the U.S. housing and real estate markets. Its investment activities may include acquiring, financing and managing residential mortgage loans, including non-agency and other specialized mortgage assets, as well as commercial mortgage investments and mortgage-backed securities.

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