Ellington Credit Company
EARNFinancial Services · Stock · monthly payer
Forward Yield
21.72%
Annual Dividend
$0.96
Payout Ratio
0%
5-Yr Growth
-22.2%
Ex-Date
Jul 31, 2026
Frequency
Monthly
Summary
As of July 2026, Ellington Credit Company (EARN) yields 21.72% ($0.96 per share annually), with a blended fair-value estimate of $6.43 — +46% upside, so it screens as undervalued. Dividend safety grade: C (54/100).
Is EARN a good dividend stock?
MixedEllington Credit Company (EARN) pays a monthly dividend yielding 21.72% ($0.96/yr), with 0 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2022
- Dividend has been shrinking, not growing
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 21.72%
- Payout Ratio
- 0%
- Annual Dividend
- $0.96
- 5-Yr Avg Growth
- -22.2%
- Ex-Dividend Date
- Jul 31, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 1.27
- Market Cap
- $166.1M
- P/E Ratio
- 15.8
- 5-Yr Total Return
- -62%
- 52-Week Range
- $4.27 – $6.06
- Dividend Safety
- C · 54/100
- Ever Cut?
- Yes (2022)
Frequently Asked Questions
EARN Price — Last 12 Months
Daily close
Price Return
1 Year
-23%
3 Years
-33%
5 Years
-62%
52-Week Range
$4.27 – $6.06
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is EARN worth?
Undervaluedlow confidenceOur blended fair-value estimate for Ellington Credit Company is $6.43 per share, versus a market price of $4.42. That implies 46% of upside — a margin of safety of about 31%.
Fair Value
$6.43
Current Price
$4.42
Upside
+46%
Margin of Safety
31%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model -5.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 10.6% discount rate (CAPM), -5.0% stage-1 growth, 2.5% terminal growth, $0.28 EPS, $0.96 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
EARN Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 30, 2026 | — | $0.0800 | regular |
| May 29, 2026 | — | $0.0800 | regular |
| Apr 30, 2026 | — | $0.0800 | regular |
| Mar 31, 2026 | — | $0.0800 | regular |
| Feb 27, 2026 | — | $0.0800 | regular |
| Jan 30, 2026 | — | $0.0800 | regular |
| Dec 31, 2025 | — | $0.0800 | regular |
| Nov 28, 2025 | — | $0.0800 | regular |
| Oct 31, 2025 | — | $0.0800 | regular |
| Sep 30, 2025 | — | $0.0800 | regular |
| Aug 29, 2025 | — | $0.0800 | regular |
| Jul 31, 2025 | — | $0.0800 | regular |
| Jun 30, 2025 | — | $0.0800 | regular |
| May 30, 2025 | — | $0.0800 | regular |
Income Calculator
At $0.96 / yr per share
