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

Ellington Credit Company (NYSE:EARN) declared a monthly dividend on Monday, March 9th. Shareholders of record on Tuesday, March 31st will be paid a dividend of 0.08 per share by the real estate investment trust on Thursday, April 30th. This represents a c) annualized dividend and a yield of 21.1%. The ex-dividend date is Tuesday, March 31st.

Ellington Credit has decreased its dividend by an average of 0.0%annually over the last three years. 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 fall. Equities 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 Trading Down 0.8%

Shares of EARN opened at $4.54 on Tuesday. Ellington Credit has a 12 month low of $4.32 and a 12 month high of $6.46. The company has a market cap of $170.60 million, a price-to-earnings ratio of -11.08 and a beta of 1.29. The business’s fifty day simple moving average is $5.27 and its two-hundred day simple moving average is $5.34.

Ellington Credit (NYSE:EARN) last issued its quarterly earnings data 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 company had revenue of $11.12 million for the quarter, compared to the consensus estimate of $12.71 million. Ellington Credit had a negative net margin of 34.31% and a positive return on equity of 16.47%. As a group, research analysts forecast that Ellington Credit will post 1.17 EPS for the current year.

Analyst Ratings Changes

EARN has been the topic of several recent research reports. Wall Street Zen raised Ellington Credit from a “sell” rating to a “hold” rating in a research note on Tuesday, November 11th. Piper Sandler cut their target price on Ellington Credit from $6.00 to $5.50 and set an “overweight” rating for the company in a research report on Friday. Finally, UBS Group set a $6.00 target price on shares of Ellington Credit in a research note on Tuesday, December 23rd. 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.com, the company has a consensus rating of “Moderate Buy” and a consensus 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.