OLD GREENWICH, Conn. - Ellington Financial Inc. (NYSE:EFC), a company specializing in a variety of financial asset investments, has declared a monthly dividend for its shareholders. The company's Board of Directors announced a dividend of $0.13 per share of common stock, which is scheduled to be paid on September 25, 2024, to stockholders of record as of August 30, 2024.
This financial move by Ellington Financial comes as part of its regular dividend distribution strategy. The company manages a diverse portfolio that includes investments in residential and commercial mortgage loans, mortgage-backed securities, consumer loans, and other financial assets. Ellington Financial is known for its external management and advisory services provided by Ellington Financial Management LLC, which is affiliated with Ellington Management Group, L.L.C.
Ellington Financial's investment strategies and performance are detailed in reports filed with the SEC, including its Annual Report on Form 10-K, available on both the company's and SEC's websites.
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Meanwhile, financial services firm Piper Sandler has maintained its Overweight rating on Ellington Financial Inc., keeping a price target of $13.00. This follows a series of virtual meetings with Ellington's management and underlines the company's strategic focus on acquiring commercial loans and investing in second lien residential opportunities.
BTIG also reaffirmed its Buy rating on Ellington, citing the company's attractive 13% dividend yield and potential for unrealized losses to regain value if interest rates decline.
In its first-quarter results for 2024, Ellington reported a net income of $0.32 per share and adjusted distributable earnings of $0.28 per share. The company's credit strategy, particularly its non-QM and residential transition loan businesses, significantly contributed to these earnings.
InvestingPro Insights
Following Ellington Financial Inc.'s (NYSE:EFC) announcement of its monthly dividend, investors may find the latest metrics from InvestingPro enlightening. As of the latest data, Ellington Financial boasts a robust Market Cap of approximately 1080M USD. This figure underscores the company's substantial presence in the financial asset investment sector.
InvestingPro data also reveals an attractive Dividend Yield of 12.81% for the year 2024, which is notably high and could be a compelling factor for income-focused investors. This aligns with one of the InvestingPro Tips, which highlights that Ellington Financial not only pays a significant dividend to shareholders but has also maintained these payments for 15 consecutive years, demonstrating a strong commitment to returning value to investors.
Additionally, the company's P/E Ratio stands at 9.87, with a slight adjustment to 9.77 over the last twelve months as of Q2 2024. This valuation metric is indicative of the market's view of the company's earnings potential, and in the case of Ellington Financial, it suggests a reasonable valuation relative to its earnings.
For those seeking further insights, InvestingPro offers additional tips on Ellington Financial Inc., with a total of 5 more tips available to subscribers, including expectations of net income growth this year and analysts' predictions of profitability for the company. These insights can be accessed through InvestingPro's platform and are designed to help investors make informed decisions.
With the next earnings date slated for November 4, 2024, interested parties may want to keep an eye on the company's performance and potential impact on future dividend distributions. The InvestingPro Fair Value estimate of 14.58 USD also provides a benchmark for investors to consider when evaluating the stock's current and potential future price.
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