Ellington Financial sets dividends for common and preferred shares

Published 07/03/2025, 13:22
Ellington Financial sets dividends for common and preferred shares

OLD GREENWICH, Conn. - Ellington Financial Inc. (NYSE: EFC), currently offering an attractive 11.58% dividend yield according to InvestingPro data, has declared a series of dividends for its shareholders, encompassing both common and various series of preferred stock, according to a recent announcement by the company’s Board of Directors. The company has maintained dividend payments for 16 consecutive years, demonstrating a strong commitment to shareholder returns.

The financial company, which specializes in a range of financial assets and maintains a healthy current ratio of 5.16, has confirmed a monthly dividend of $0.13 per share for its common stock, set to be paid on April 25, 2025, to stockholders of record as of March 31, 2025. In addition, Ellington Financial has declared quarterly dividends for several series of preferred stock, with payment dates scheduled for late April 2025. These include dividends for Series A, B, C, and D preferred stock, with respective per-share amounts of $0.609031, $0.390625, $0.5390625, and $0.4375.

Stockholders of record for Series A, B, and C preferred shares as of March 31, 2025, will receive their dividends on April 30, 2025. Meanwhile, Series D preferred stockholders of record as of March 20, 2025, will receive their dividends earlier, on March 30, 2025.

The announcement also included a cautionary note regarding forward-looking statements. The company highlighted that such statements are subject to numerous risks and uncertainties and that actual results could differ materially from expectations. Factors that could influence the company’s performance include changes in interest rates, market value of investments, market volatility, and regulatory changes, among others.

Ellington Financial’s diverse investment portfolio includes residential and commercial mortgage loans, mortgage-backed securities, consumer loans, and other strategic investments. The company, which InvestingPro analysis suggests is currently undervalued, has demonstrated strong performance with a 34.37% total return over the past year. The company is managed by Ellington Financial Management LLC, which is an affiliate of Ellington Management Group, L.L.C. For deeper insights into EFC’s valuation and growth potential, investors can access comprehensive Pro Research Reports, available exclusively to InvestingPro subscribers.

This news is based on a press release statement from Ellington Financial Inc. and does not serve as an offer of securities or a solicitation of an offer to purchase securities.

In other recent news, Ellington Financial LLC reported strong fourth-quarter results for 2024, with earnings per share (EPS) exceeding expectations at $0.45, compared to the forecast of $0.39. Despite this earnings beat, the company reported revenue of $71.97 million, which fell short of the anticipated $76.83 million. Keefe, Bruyette & Woods analyst Bose T. George raised the price target for Ellington Financial shares to $14.50 from $13.75, maintaining an Outperform rating based on the company’s stable book value and robust mortgage banking operations. The analyst also maintained forward fiscal year 2025 and 2026 EPS estimates at $1.56 and $1.72, respectively, introducing a new estimate for fiscal year 2027 at $1.72.

Ellington Financial’s credit portfolio and Longbridge segment were significant contributors to the quarter’s performance, despite a net loss in the agency segment. The company reported a GAAP net income of $0.25 per share and adjusted distributable earnings of $0.45 per share. The management indicated that the current $0.39 dividend is well-covered, with an 11.5% breakeven return on equity (ROE). The firm’s strategic focus on securitization and innovative financial products continues to drive its operational success.

The recent developments reflect strong investor confidence, as evidenced by the stock’s positive reaction in after-hours trading. With a focus on maintaining dividend coverage and expanding securitization efforts, Ellington Financial is exploring new financial products, particularly in the senior-focused market. The company’s strategic initiatives and analyst upgrades suggest a continued positive outlook in the market.

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