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

Ellington Credit Company (NYSE:EARN) declared a monthly dividend on Monday, June 8th. Investors of record on Tuesday, June 30th will be given a dividend of 0.08 per share by the real estate investment trust on Friday, July 31st. This represents a c) dividend on an annualized basis and a dividend yield of 20.7%. The ex-dividend date is Tuesday, June 30th.

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

Ellington Credit Stock Down 0.5%

Ellington Credit stock opened at $4.64 on Tuesday. Ellington Credit has a 12-month low of $4.27 and a 12-month high of $6.08. The firm’s fifty day moving average is $4.69 and its 200 day moving average is $5.00. The company has a market capitalization of $174.18 million, a PE ratio of -4.46 and a beta of 1.27.

Ellington Credit (NYSE:EARN) last released its earnings results on Wednesday, May 20th. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.03). The company had revenue of $9.87 million for the quarter, compared to analyst estimates of $10.57 million. Ellington Credit had a negative net margin of 75.00% and a positive return on equity of 16.47%.

Analysts Set New Price Targets

A number of analysts have commented on EARN shares. Wall Street Zen upgraded shares of Ellington Credit from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. Piper Sandler reduced their price target on shares of Ellington Credit from $6.00 to $5.50 and set an “overweight” rating for the company in a research report on Friday, March 6th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, 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.