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

Key Points

• Ellington Credit declared a monthly dividend of $0.08 per share, payable September 30 to shareholders of record on August 31. The dividend implies an annualized yield of approximately 22.0%.
• The stock traded down $0.04 to $4.36, near its 52-week low of $4.25. The company has a market capitalization of about $163.9 million and a payout ratio of 88.9%.
• Ellington Credit’s latest quarterly results fell short of expectations, with earnings of $0.19 per share versus a $0.22 consensus estimate and revenue of $9.87 million versus $10.57 million expected. Analysts maintain a “Moderate Buy” consensus, with an average price target of $5.50.

Ellington Credit Company (NYSE:EARN - Get Free Report) announced a monthly dividend on Monday, August 10th. Shareholders of record on Monday, August 31st will be given a dividend of 0.08 per share by the real estate investment trust on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 22.0%. The ex-dividend date is Monday, August 31st.

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 tumble.

Ellington Credit Stock Performance

NYSE:EARN traded down $0.04 during trading hours on Monday, reaching $4.36. The company's stock had a trading volume of 217,779 shares, compared to its average volume of 443,148. Ellington Credit has a 1 year low of $4.25 and a 1 year high of $5.89. The firm has a 50-day simple moving average of $4.46 and a 200-day simple moving average of $4.72. The firm has a market capitalization of $163.86 million, a price-to-earnings ratio of -4.19 and a beta of 1.28.

Ellington Credit (NYSE:EARN - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The real estate investment trust reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.03). The business had revenue of $9.87 million during the quarter, compared to analyst estimates of $10.57 million.

Analyst Ratings Changes

Separately, Piper Sandler dropped their price objective on 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 equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Ellington Credit currently has a consensus rating of "Moderate Buy" and an average target price of $5.50.

About Ellington Credit

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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