Ellington Credit Company (NYSE:EARN) Declares $0.08 Monthly Dividend

Key Points

• Ellington Credit Company has declared a monthly dividend of $0.08 per share, with a yield of 17.0%, payable on September 30th to shareholders of record on August 29th.
• The company has a payout ratio of 88.9%, indicating that its current dividend is covered by earnings, but future sustainability may be at risk if earnings decline.
• Recent institutional investments show significant increases in holdings, with Wells Fargo boosting its position by 56,104,600%, indicating growing confidence in the company.

Ellington Credit Company (NYSE:EARN - Get Free Report) announced a monthly dividend on Friday, August 8th, Wall Street Journal reports. Shareholders of record on Friday, August 29th will be given a dividend of 0.08 per share by the real estate investment trust on Tuesday, September 30th. This represents a c) annualized dividend and a yield of 17.0%. The ex-dividend date is Friday, August 29th.

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. Research analysts expect Ellington Credit to earn $1.13 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 85.0%.

Ellington Credit Trading Up 0.2%

EARN stock traded up $0.01 during midday trading on Friday, hitting $5.64. 310,616 shares of the company's stock were exchanged, compared to its average volume of 576,166. Ellington Credit has a 12-month low of $4.32 and a 12-month high of $7.11. The firm has a 50 day moving average price of $5.79 and a 200-day moving average price of $5.83. The stock has a market capitalization of $211.83 million, a price-to-earnings ratio of -43.38 and a beta of 1.29.

Ellington Credit (NYSE:EARN - Get Free Report) last issued its quarterly earnings results on Tuesday, May 20th. The real estate investment trust reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.27 by ($0.01). Ellington Credit had a negative net margin of 21.82% and a positive return on equity of 17.67%. The firm had revenue of $9.25 million during the quarter, compared to the consensus estimate of $10.35 million. During the same quarter last year, the firm posted $0.27 earnings per share. On average, sell-side analysts forecast that Ellington Credit will post 1.17 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Wells Fargo & Company MN boosted its position in Ellington Credit by 56,104,600.0% during the 4th quarter. Wells Fargo & Company MN now owns 1,122,094 shares of the real estate investment trust's stock worth $7,428,000 after acquiring an additional 1,122,092 shares during the period. Millennium Management LLC boosted its position in Ellington Credit by 485.8% during the 1st quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust's stock worth $5,044,000 after acquiring an additional 773,169 shares during the period. Susquehanna International Group LLP boosted its position in Ellington Credit by 570.4% during the 4th quarter. Susquehanna International Group LLP now owns 481,669 shares of the real estate investment trust's stock worth $3,189,000 after acquiring an additional 409,817 shares during the period. Jane Street Group LLC boosted its position in Ellington Credit by 415.4% during the 1st quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust's stock worth $2,055,000 after acquiring an additional 306,192 shares during the period. Finally, Clear Harbor Asset Management LLC boosted its position in Ellington Credit by 21.6% during the 2nd quarter. Clear Harbor Asset Management LLC now owns 350,500 shares of the real estate investment trust's stock worth $2,015,000 after acquiring an additional 62,200 shares during the period. 20.40% of the stock is currently owned by institutional investors.

Ellington Credit Company Profile

Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.