Ellington Residential cuts monthly dividend 20% in 2022

Mortgage REIT Ellington Residential (symbol EARN) has announced a 20% dividend cut to 8 cents per share for the company's monthly dividend. 

Ellington Residential Mortgage REIT on June 7, 2022 announced that its Board of Trustees has declared a monthly common dividend of $0.08 per share, payable on June 27, 2022 to shareholders of record as of May 31, 2022. In October 2021 EAR had started to pay monthly instead of quarterly dividends. The monthly dividend was 10 cents per share and will now drop to 8 cents per share.

At a stock price of $8.00 per share the dividend yield for Ellington Residential is very high with 12%. This is not the first dividend cut by EARN with a 2016 dividend cut of 11% already being announced.

Ellington Residential Mortgage REIT is a real estate investment trust. EARN is specialized in acquiring, investing in, and managing a residential mortgage and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), for which the principal and interest payments are guaranteed by a United States government agency or a United States Government-sponsored entity (Agency RMBS) and, to a lesser extent, RMBS backed by prime jumbo, Alternative A-paper manufactured housing, and subprime residential mortgage loans (non-Agency RMBS). Since 2021 EARN has been paying a monthly dividend to shareholders.