Ellington Credit (NYSE:EARN) Declares Monthly Dividend of $0.08

Ellington Credit (NYSE:EARN) has officially announced a monthly dividend payment of $0.08 per share, which was declared on March 7th. This payment is set to be distributed to shareholders of record as of March 31st on April 25th. When annualized, this dividend amounts to $0.96, resulting in a substantial yield of 14.94%. It is important to note that the ex-dividend date is March 31st, which means shareholders must own the stock before this date to qualify for the upcoming dividend.

Understanding Ellington Credit's Dividend Coverage

Ellington Credit's current dividend payout ratio is reported at 82.1%. This figure indicates that the dividends being paid out are covered by the company's earnings at this time. However, there are concerns that this coverage may not hold if earnings were to decline in the future. Looking ahead, analysts have projected that Ellington Credit could earn $1.13 per share next year. This projection suggests a future payout ratio of approximately 85.0%, which still supports the company's ability to continue covering its annual dividend commitment of $0.96.

Recent Market Performance

On the trading floor, shares of Ellington Credit saw a slight increase of 0.5%, rising by $0.04 to reach $6.43 during midday trading. The trading volume reached 623,629 shares, while the average volume stands at around 659,185 shares. The company’s stock has a 50-day moving average priced at $6.56 and a 200-day moving average at $6.70. Market capitalization for Ellington Credit is currently at $187.46 million, with a price-to-earnings (PE) ratio of 5.74 and a beta of 1.85. Over the past year, the stock has fluctuated between a low of $6.19 and a high of $7.26.

Analyst Ratings Update

In recent news, analysts at StockNews.com have upgraded their rating on Ellington Credit from "sell" to "hold". This change reflects a shifting perspective among market analysts regarding the company’s performance in the near future.

About Ellington Credit

Ellington Credit is a real estate investment trust (REIT) that specializes in acquiring, investing in, and managing assets related to residential mortgages and real estate. The company primarily focuses on managing residential mortgage-backed securities (RMBS), including both agency pools as well as agency collateralized mortgage obligations (CMOs). Additionally, it deals with non-agency RMBS, offering exposure to both investment-grade and non-investment-grade securities.

Conclusion

Ellington Credit's declaration of a monthly dividend represents a strong commitment to returning value to its shareholders. With the projected earnings expected to cover future dividends, investors may want to keep an eye on this REIT as it navigates the market.

Ellington, Dividend, Investment