Ellington Financial Inc. to Issue Monthly Dividend of $0.13 (NYSE:EFC)

Key Points

• Ellington Financial declared a monthly dividend of $0.13 per share, payable June 30 to shareholders of record (ex-dividend) May 29, implying an annual dividend of $1.56 and a 11.5% yield.
• The dividend currently has a payout ratio of 91.2%, but analysts forecast $1.94 in EPS next year—bringing the expected payout ratio to about 80.4%—so the payout is covered now but could be at risk if earnings fall.
• Ellington beat the quarter with $0.55 EPS versus a $0.42 estimate and $171.8M revenue; the stock trades near $13.60 with a PE of 8.19 and a consensus analyst rating of Moderate Buy (target $14.56).

Ellington Financial Inc. (NYSE:EFC - Get Free Report) declared a monthly dividend on Thursday, May 7th. Shareholders of record on Friday, May 29th will be paid a dividend of 0.13 per share by the financial services provider on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 11.5%. The ex-dividend date is Friday, May 29th.

Ellington Financial has increased its dividend by an average of 0.0%annually over the last three years. Ellington Financial has a dividend payout ratio of 91.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Research analysts expect Ellington Financial to earn $1.94 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 80.4%.

Ellington Financial Trading Up 0.2%

Shares of EFC opened at $13.60 on Friday. The stock's 50-day moving average is $12.37 and its two-hundred day moving average is $13.10. The stock has a market cap of $1.69 billion, a PE ratio of 8.19 and a beta of 0.94. Ellington Financial has a 12 month low of $11.27 and a 12 month high of $14.12. The company has a debt-to-equity ratio of 10.18, a current ratio of 41.03 and a quick ratio of 47.25.

Ellington Financial (NYSE:EFC - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.55 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.13. The company had revenue of $171.83 million for the quarter, compared to analysts' expectations of $114.09 million. Ellington Financial had a return on equity of 15.81% and a net margin of 72.08%. Equities analysts forecast that Ellington Financial will post 1.87 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Wall Street Zen cut Ellington Financial from a "hold" rating to a "sell" rating in a research note on Saturday, March 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ellington Financial in a research note on Wednesday, January 21st. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Ellington Financial presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.56.

Ellington Financial Company Profile

Ellington Financial, Inc NYSE: EFC is a mortgage real estate investment trust (REIT) that focuses on generating attractive risk-adjusted returns through investments in residential and commercial mortgage-related assets. Established in 2013, the company is externally managed by Ellington Financial Management, L.P., a subsidiary of Ellington Management Group, an alternative asset management firm. EFC's core strategy centers on actively acquiring and managing agency and non-agency residential mortgage-backed securities (MBS), mortgage servicing rights, residential whole loans, and other structured finance instruments, including asset-backed securities and commercial mortgage-backed securities (CMBS).

The company employs leverage and structured financing tools—such as repurchase agreements and secured credit facilities—to enhance portfolio yield while maintaining focus on risk mitigation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.