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

Key Points

• Ellington Credit Company declared a monthly dividend of $0.08 per share, with the record date set for July 31 and payment scheduled for August 31.
• The dividend implies an annualized yield of 21.9%, and the company’s payout ratio of 88.9% suggests the dividend is currently covered by earnings, though that could become less secure if earnings weaken.
• On the operating side, Ellington Credit recently missed analyst expectations on both earnings and revenue, and its stock has been trading below its recent moving averages amid a broader price range of $4.27 to $6.08 over the past year.

Ellington Credit Company (NYSE:EARN - Get Free Report) declared a monthly dividend on Wednesday, July 8th. Investors of record on Friday, July 31st will be paid a dividend of 0.08 per share by the real estate investment trust on Monday, August 31st. This represents a c) annualized dividend and a yield of 21.9%. The ex-dividend date of this dividend is Friday, July 31st.

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 fall.

Ellington Credit Stock Performance

EARN stock opened at $4.38 on Thursday. The business has a 50-day simple moving average of $4.64 and a two-hundred day simple moving average of $4.87. The company has a market capitalization of $164.79 million, a P/E ratio of -4.22 and a beta of 1.27. Ellington Credit has a 52-week low of $4.27 and a 52-week high of $6.08.

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

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen raised shares of Ellington Credit from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target 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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