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) declared a monthly dividend on Friday, August 8th, Wall Street Journal reports. Investors of record on Friday, August 29th will be paid a dividend of 0.08 per share by the real estate investment trust on Tuesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 16.7%. The ex-dividend date of this dividend is Friday, August 29th.

Ellington Credit has a dividend payout ratio of 88.9% indicating that 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 Stock Performance

Ellington Credit stock traded up $0.09 during midday trading on Wednesday, reaching $5.75. The stock had a trading volume of 38,217 shares, compared to its average volume of 575,271. Ellington Credit has a twelve month low of $4.32 and a twelve month high of $7.11. The stock has a market capitalization of $215.78 million, a PE ratio of -44.19 and a beta of 1.29. The stock's 50-day simple moving average is $5.79 and its 200 day simple moving average is $5.80.

Ellington Credit (NYSE:EARN - Get Free Report) last issued its 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 analyst estimates of $10.35 million. During the same quarter in the previous year, the business posted $0.27 EPS. Equities analysts predict that Ellington Credit will post 1.17 earnings per share for the current fiscal year.

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.