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

Key Points

• Declared $0.08 monthly dividend payable May 29 to holders of record April 30, equal to $0.96 annually and a 21.2% yield.
• The dividend is largely covered today (88.9% payout ratio) and analysts forecast roughly $1.13 EPS next year (implying an expected payout ratio ≈85%), but coverage could weaken if earnings decline.
• Shares trade near $4.53 with a $170M market cap and a 12‑month range of $4.27–$6.08; analyst views are mixed with an average target of $5.75 and ratings from Hold to Buy.

Ellington Credit Company (NYSE:EARN - Get Free Report) announced a monthly dividend on Tuesday, April 7th. Investors of record on Thursday, April 30th will be given a dividend of 0.08 per share by the real estate investment trust on Friday, May 29th. This represents a c) dividend on an annualized basis and a yield of 21.2%. The ex-dividend date is Thursday, April 30th.

Ellington Credit has decreased its dividend by an average of 0.0%per year over the last three years. Ellington Credit has a 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. 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 Down 1.0%

EARN opened at $4.53 on Wednesday. The company has a fifty day simple moving average of $4.86 and a 200 day simple moving average of $5.16. The firm has a market cap of $170.00 million, a price-to-earnings ratio of -11.04 and a beta of 1.29. Ellington Credit has a twelve month low of $4.27 and a twelve month high of $6.08.

Ellington Credit (NYSE:EARN - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The real estate investment trust reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.03). The firm had revenue of $11.12 million for the quarter, compared to analyst estimates of $12.71 million. Ellington Credit had a negative net margin of 34.31% and a positive return on equity of 16.47%. On average, analysts forecast that Ellington Credit will post 1.17 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on EARN shares. Wall Street Zen raised shares of Ellington Credit from a "sell" rating to a "hold" rating in a report on Saturday. UBS Group set a $6.00 price objective on shares of Ellington Credit in a report on Tuesday, December 23rd. Finally, Piper Sandler decreased their price objective on shares of Ellington Credit from $6.00 to $5.50 and set an "overweight" rating for the company in a report on Friday, March 6th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Ellington Credit has an average rating of "Moderate Buy" and an average target price of $5.75.

Ellington Credit Company Profile

Ellington Credit Income Fund NYSE: EARN is a closed-end management investment company that seeks to generate current income through a diversified portfolio of mortgage- and asset-backed securities. The fund primarily invests in residential mortgage-backed securities (RMBS) and asset-backed securities (ABS), with additional exposure to commercial mortgage-backed securities (CMBS) and related structured credit instruments. To enhance income and manage risk, the fund employs leverage and derivative strategies such as interest rate swaps and credit default swaps, allowing it to adjust duration and credit exposure dynamically.

The fund is externally managed and advised by Ellington Management Group, LLC, an established investment firm specializing in mortgage credit and structured products.

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