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

Ellington Credit Company (NYSE:EARN) declared a monthly dividend on Monday, August 10th. Stockholders of record on Monday, August 31st will be paid 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 dividend yield of 22.0%. The ex-dividend date of this dividend is Monday, August 31st.

Ellington Credit has decreased its dividend payment by an average of 0.0%per year 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 fall.

Ellington Credit Trading Down 0.9%

EARN opened at $4.36 on Tuesday. Ellington Credit has a 1-year low of $4.25 and a 1-year high of $5.89. The stock has a market capitalization of $163.85 million, a price-to-earnings ratio of -4.19 and a beta of 1.28. The business has a 50 day moving average of $4.45 and a 200-day moving average of $4.71.

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

Wall Street Analyst Weigh In

Separately, Piper Sandler decreased their price target on shares of 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 given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target 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.