Ellsworth Growth Declares $0.16 Cash Dividend on Ex-Dividend Date of September 16, 2025

Introduction

Ellsworth Growth has announced a cash dividend of $0.16 per share, with a record date of September 16, 2025. This marks the latest dividend action by a company that has demonstrated strong earnings performance in its most recent financial report. With a net income of $23,606,997 and earnings per share (EPS) of $1.71, Ellsworth appears to be rewarding shareholders with a solid payout, despite the absence of a stock dividend. The broader market environment leading into the ex-dividend date remains stable, with investor sentiment focused on companies that combine robust earnings with consistent dividend policies.

Dividend Overview and Context

Ellsworth Growth’s cash dividend of $0.16 per share is significant in the context of its strong operating performance. The company reported operating income of $3,996,336 on total revenue of $5,891,654, indicating strong operational efficiency. The net income attributable to common shareholders was $23,606,997, yielding a basic EPS of $1.71. While the company has not indicated a stock dividend, the cash payout reflects a healthy capital return strategy.

On the ex-dividend date of September 16, 2025, the stock price is expected to adjust by approximately $0.16 to reflect the dividend payout, as per typical market behavior. Shareholders who purchase the stock before the ex-dividend date will be entitled to receive the dividend, while those who purchase on or after the date will not.

Backtest Analysis

A backtest of Ellsworth Growth’s dividend history reveals consistent post-ex-dividend price recovery. Across 11 dividend events, the average recovery duration is 5.09 days, with a 100% probability of recovering the dividend impact within 15 days. This suggests that the stock historically absorbs the dividend impact quickly and efficiently, indicating a strong price rebound mechanism.

The methodology used in the backtest includes a full reinvestment of dividends and assumes no transaction costs or taxes. The results suggest that the stock has a reliable pattern of price correction following the ex-dividend date, which can be a useful signal for timing investment decisions.

Driver Analysis and Implications

Ellsworth Growth’s decision to pay a cash dividend is likely supported by strong cash flow from operations and a manageable interest expense of $434. The company’s total expenses were $1,895,318, significantly lower than its operating income, suggesting healthy profit margins that can support regular dividend payments.

From a macroeconomic standpoint, the current interest rate environment and investor preference for yield could support Ellsworth’s dividend strategy. Companies with consistent earnings and strong balance sheets are often favored by income-focused investors, which may contribute to stable demand for the stock.

Investment Strategies and Recommendations

• Short-Term Strategy: Investors could consider entering positions just before the ex-dividend date to capture both the dividend and the potential price rebound observed in historical data. Given the 5.09-day average recovery period, an exit strategy within two weeks may optimize returns.
• Long-Term Strategy: For long-term investors, the combination of strong earnings, low expenses, and consistent dividend payments makes Ellsworth Growth a candidate for portfolio inclusion. Reinvesting dividends can compound returns over time, particularly in a rising yield environment.

Conclusion & Outlook

Ellsworth Growth’s $0.16 cash dividend reflects a strong earnings profile and disciplined capital return strategy. The company’s consistent performance and historical price recovery patterns provide a favorable backdrop for investors seeking income or tactical entry points around the ex-dividend date. Investors are advised to monitor the upcoming earnings release and any follow-up dividend announcements for further strategic insights.

Visuals