Ellington Financial Increases Monthly Dividend By 40%; Street Remains Bullish

Ellington Financial has raised its monthly dividend by 40% to $0.14 per share. The new dividend will be paid on May 25 to shareholders of record as of April 30.

Ellington’s (EFC) CEO Laurence Penn said, “the Board increased our monthly dividend to $0.14, as we continue to see strong growth in our business, driven by a larger flow of high yielding loans from our origination programs.”

Penn further added that the “positive trends in our business, combined with the dry powder we have to continue to expand the portfolio, give us confidence that we will be able to increase our dividend further from here.” (See Ellington Financial stock analysis on TipRanks)

The company’s annual dividend of $1.68 per share now reflects a dividend yield of 10.3%. On Feb. 23, Maxim Group analyst Michael Diana raised the stock’s price target to $19 (11.7% upside potential) from $18 due to higher book value. In a note to investors, the analyst said, “EFC remains our top pick in mortgage REITs, because of its superior risk management, which protects BV [book value] during dislocations.” The analyst has maintained a Buy rating on the stock.

Overall, the rest of the Street has a Strong Buy consensus rating based on 3 unanimous Buys. The average analyst price target of $17.67 implies upside potential of about 3.9% to current levels. Shares have skyrocketed by about 355% in one year.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on EFC, with 5.6% of investors increasing their exposure to EFC stock over the past 30 days.

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