Current Report: Ellington Financial May Make A 20.56% Annual Upside

The company was founded in 2007 and is headquartered in Old Greenwich, CT.

Ellington Financial Inc (EFC) provides investment services.

It operates through the Investment Portfolio and Longbridge segments.

Three key data points gauge EFC (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

EFC Price

Ellington’s single share price increased  $1.13 (or about 9.12%) from $12.39 to $13.52 in the past year, per Monday’s opening market report.

Eight analysts cover the stock. Their median target price predicted a $1.22 gain in price to $14.74 in the next year. Furthermore, 2 years of price history shows an average  $1.60 annual price gain. But I’ll use the analysts' $1.22 to calculate returns after I discuss dividends.  

EFC Dividends

Ellington has paid monthly dividends since February, 2019. But started out paying quarterly in December of 2010.

The most recent M dividend of $0.13 was paid May 29th (to shareholders on record as of April 30th), and the resulting annual $1.56 payout yields a forward-looking 11.5% (per Monday’s opening market report.}

EFC Returns

Putting it all together, as of June 1st, a possible gross gain of $2.78 was projected. The $1.22 per share annual gain was added to the $1.56 forward-looking annual dividend.

A little over $1000 invested in EFC at Monday’s $13.52 opening share price would buy 74 shares, which multiply the $2.78 gross gain to $205.62 for the coming year, or 20.56%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

Ellington’s projected annual dividend from $1K invested is $115.00. So EFC shows a dividend from $1,000 invested over 8.5 times its $13.52 single share price as of Monday’s opening.

The exact track of EFC’s future share price and dividend will entirely be determined by market action and company finances.  

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.