Ellington Financial's (EFC) Growth Strategy and its Place Among the Safest Monthly Dividend Stocks

Ellington Financial Inc. (NYSE:EFC) is included among the 10 Safest Monthly Dividend Stocks to Buy.

Ellington Financial Inc. (NYSE:EFC), a Connecticut-based specialty finance firm, invests in a wide range of financial assets tied to mortgages, consumers, corporations, and other sectors.

CEO Laurence Eric Penn called Q2 2025 an “excellent quarter,” citing solid results from both the diversified investment portfolio and loan origination platforms. Ellington Financial Inc. (NYSE:EFC) posted GAAP net income of $0.45 per share, translating to an annualized economic return of nearly 14%, with book value per share rising to $13.49.

Penn also emphasized the benefits of its credit hedging strategy, noting that the firm entered the quarter with a sizable hedge portfolio as credit spreads widened due to tariff uncertainty. He further pointed to the completion of six securitizations at favorable levels during the quarter.

Ellington Financial Inc. (NYSE:EFC) is a solid dividend company that offers monthly dividends to shareholders. The company’s monthly payout comes in at $0.13 per share and has a dividend yield of 11.95%, as of September 23. It is among the safest stocks to buy as the company has maintained its payouts for 15 consecutive years.

While we acknowledge the potential of EFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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