Ellington Financial Inc.·Real Estate

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OLD GREENWICH, Conn.--(BUSINESS WIRE)--Ellington Financial Inc. (NYSE: EFC) ("we") today announced that its Board of Directors has declared a monthly dividend of $0.13 per share of common stock, payable on May 29, 2026 to common stockholders of record as of April 30, 2026. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forwar.

Market volatility has a way of reminding investors how much they depend on a single source of income.

Ellington Financial's EFC-C preferred shares are overvalued relative to sector peers, with a stripped yield of 8.66% that fails to justify current pricing. EFC-C's coupon rate of 8.625% resets in April 2028, but the yield to call at 8.7% is uncompetitive versus baby bonds and other preferreds offering 9%–10%. Baby bonds in the sector offer higher yields, lower risk, and less volatility, making EFC-C less attractive for risk-conscious investors.

Ellington Financial is a REIT specializing in mortgage-related assets, with a portfolio focused on non-QM loans, CMBS, and reverse mortgages. EFC's credit portfolio, representing 31.7% in non-QM loans and 19% in CMBS, is the primary risk and return driver. Leverage is significant, with a 2.7x ratio on the credit portfolio, while the Longbridge leverage figures are less material for risk assessment.

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime residential mortgage loans; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; corporate debt and equity securities; corporate loans; and other strategic investments. In addition, the company offers consumer loans and asset-backed securities backed by consumer and commercial assets. Ellington Financial LLC was incorporated in 2007 and is based in Old Greenwich, Connecticut.
Real Estate
REIT - Mortgage
400
2010-10-08
0.94