Ellington Financial Declares Common and Preferred Dividends
Ellington Financial Inc. (EFC) declares dividends for common and preferred stockholders, including monthly and quarterly payments on various series of preferred stock.
Ellington Financial Inc.'s announcement of dividends across various series of stock indicates a distribution of profits back to shareholders, which is a fundamental aspect of shareholder value. The declaration of both monthly and quarterly dividends suggests a stable and predictable income stream for investors, which is often attractive to income-focused portfolios. The varied rates of dividends, corresponding to different series of preferred stock, reflect contractual obligations and the differing levels of risk associated with each series. It's important to note that preferred stocks typically have fixed dividends and are senior to common stock in terms of payout structure.
Investors often view regular dividend payments as a sign of a company's financial health and its management's confidence in ongoing profitability. However, it's essential to consider the payout ratio—the percentage of earnings paid out as dividends—to assess sustainability. A payout ratio that is too high could indicate that the company is not reinvesting enough back into its operations, which might affect long-term growth. On the other hand, a moderate payout ratio could signify a balanced approach between rewarding shareholders and funding future growth.
The announcement of these dividends should be considered in the context of the broader financial sector and the current interest rate environment. Fixed-to-floating and fixed-rate reset preferred stocks, such as Series A and Series C from Ellington Financial, offer investors protection against rising interest rates, as the dividend rates can adjust after a certain period. This feature can make these securities more attractive in an environment where interest rates are expected to rise, as they can potentially offer higher yields in the future.
However, investors should also be aware of the liquidity and market demand for these types of securities. Preferred stocks often trade with less liquidity than common stocks, which can impact the price and the ease of entry or exit from positions. Additionally, the performance of financial companies like Ellington Financial can be sensitive to changes in interest rates, mortgage rates and real estate market conditions, which should be factored into an investor's analysis of the company's dividend announcements and overall investment potential.
Dividend announcements, such as those made by Ellington Financial, can have macroeconomic implications. They often reflect the company's sector-specific outlook and the management's expectations regarding future earnings and economic conditions. In a stable or growing economy, companies may increase dividends as earnings improve. Conversely, during economic downturns, dividends can be reduced or suspended as companies brace for lower earnings.
From an economic perspective, the payment of dividends can signal to the market that the company has a steady cash flow, which may be interpreted as a positive indicator of economic stability within the sector. However, it is also critical to analyze these dividends in the context of the overall economy. For instance, if economic indicators suggest a potential downturn, the sustainability of these dividends could come into question.
03/07/2024 - 04:17 PM
OLD GREENWICH, Conn. --(BUSINESS WIRE)--
Ellington Financial Inc. (NYSE: EFC) (the "Company") today announced that its Board of Directors has declared the following: (i) a monthly dividend of $0.13 $0.42 18756.750% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, payable on April 30, 2024 to Series A preferred stockholders of record as of March 29, 2024; (iii) a quarterly dividend of $0.39 06256.250% Series B Fixed-Rate Reset Cumulative Redeemable Preferred Stock, payable on April 30, 2024 to Series B preferred stockholders of record as of March 29, 2024; (iv) a quarterly dividend of $0.53 906258.625% Series C Fixed-Rate Reset Cumulative Redeemable Preferred Stock, payable on April 30, 2024 to Series C preferred stockholders of record as of March 29, 2024; (v) a quarterly dividend of $0.43 757.00% Series D Cumulative Perpetual Redeemable Preferred Stock, payable on April 1, 2024 to Series D preferred stockholders of record as of March 20, 2024; and (vi) a quarterly dividend of $0.51 56258.250% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, payable on April 1, 2024 to Series E preferred stockholders of record as of March 20, 2024.
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. Forward-looking statements involve numerous risks and uncertainties. The Company's actual results may differ from its beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek" or similar expressions or their negative forms, or by references to strategy, plans, or intentions. Examples of forward-looking statements in this press release include statements regarding the Company's payment of dividends. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us. These beliefs, assumptions, and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations and strategies may vary materially from those expressed or implied in our forward-looking statements. The following factors are examples of those that could cause actual results to vary from our forward-looking statements: changes in interest rates and the market value of the Company's investments, market volatility, changes in mortgage default rates and prepayment rates, the Company's ability to borrow to finance its assets, changes in government regulations affecting the Company's business, the Company's ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company's ability to achieve cost savings and efficiencies, operating efficiencies, synergies and other benefits, including the increased scale, and avoid potential business disruption from its completed merger with Arlington Asset Investment Corp.; the Company's ability to maintain its qualification as a real estate investment trust, or "REIT," and other changes in market conditions and economic trends, such as changes to fiscal or monetary policy, heightened inflation, slower growth or recession, and currency fluctuations. Furthermore, forward-looking statements are subject to risks and uncertainties, including, among other things, those described under Item 1A of the Company's Annual Report on Form 10-K, which can be accessed through the Company's website at www.ellingtonfinancial.com or at the SEC's website (www.sec.gov ). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected or implied may be described from time to time in reports the Company files with the SEC, including reports on Forms 10-Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
This release and the information contained herein do not constitute an offer of any securities or solicitation of an offer to purchase securities.
About Ellington Financial
Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans and mortgage-backed securities, reverse mortgage loans, mortgage servicing rights and related investments, consumer loans, asset-backed securities, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.
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Source: Ellington Financial Inc.
The dividend declared for common stockholders is $0.13 per share, payable on April 25, 2024.
The quarterly dividend of $0.421875 per share for Series A preferred stockholders will be paid on April 30, 2024.
The quarterly dividend for the 6.250% Series B preferred stock is $0.390625 per share, payable on April 30, 2024.
The quarterly dividend of $0.5390625 per share for Series C preferred stockholders will be paid on April 30, 2024.
The quarterly dividend for the 7.00% Series D preferred stock is $0.4375 per share, payable on April 1, 2024.
The quarterly dividend of $0.515625 per share for Series E preferred stockholders will be paid on April 1, 2024.
