EFC Dividend

Although EFC has a dividend of 0.13 with an ex-dividend date of Dec 31, you can sell covered calls on Ellington Financial Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:10 PM ET):

Ellington Financial Inc. (EFC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
13.85	13.86	13.86	+0.06	551K	10	1.5B

EFC Dividend-Like Income Using Covered Calls

With EFC at 13.86, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield	Annual Premium	Cents/Day
3%	0.42	0.1
5%	0.69	0.2
10%	1.39	0.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

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Want more examples? EFAX Dividend | EFFE Dividend