Ellington Credit Company (EARN) Expects Dividend Run

Ellington Credit Company (EARN) is expected to experience a "Dividend Run" ahead of its upcoming dividend payout. This phenomenon occurs when a stock rises in anticipation of its dividend payment. The ex-dividend date marks the last day a buyer is entitled to the dividend, so the stock price should drop by the dividend amount on that day. However, before the ex-dividend date, there should be "pressure" for the stock to rise in expectation of the next dividend payment. Some investors like to invest and sell on specific target dates, while others employ dollar cost averaging.