Core Insights - Ellington Financial Inc. (NYSE:EFC) is recognized as one of the 10 safest monthly dividend stocks to buy [1] - The company operates as a specialty finance firm, investing in a diverse range of financial assets related to mortgages, consumers, and corporations [2] Financial Performance - For Q2 2025, Ellington Financial reported a GAAP net income of $0.45 per share, resulting in an annualized economic return of nearly 14% [3] - The book value per share increased to $13.49 during the same quarter [3] Investment Strategy - CEO Laurence Eric Penn highlighted the effectiveness of the company's credit hedging strategy, which was beneficial as credit spreads widened due to tariff uncertainties [4] - The firm successfully completed six securitizations at favorable levels during the quarter [4] Dividend Information - Ellington Financial offers a monthly dividend of $0.13 per share, with a dividend yield of 11.95% as of September 23 [5] - The company has maintained its dividend payouts for 15 consecutive years, reinforcing its status as a solid dividend company [5]

Core Viewpoint - Investors should focus on shareholders' yield, which encompasses dividend yield, net buyback yield, and debt reduction yield, to gain a comprehensive understanding of how companies return value to shareholders [2][3]. Shareholders' Yield Calculation - Shareholders' yield is calculated as: - Shareholder's Yield = Dividend Yield + Net Buyback Yield + Debt Reduction Yield [3][9]. - This metric provides a more holistic view of a company's capital allocation compared to just dividend payments [3]. Benefits of Shareholders' Yield - Focusing on shareholders' yield allows investors to identify companies that effectively reward their shareholders, leading to more informed investment decisions [3][5]. - A higher shareholders' yield often indicates steady income streams and potential capital appreciation, contributing to superior long-term performance [5]. Company Examples - **Canadian Natural Resources Limited (CNQ)**: - Offers a competitive dividend yield of approximately 5.28% and has increased its dividend payout 17 times in the past five years, reflecting an annualized growth rate of 23.3% [8][10]. - Reduced long-term debt from $16.02 billion in 2020 to $13.74 billion in December 2024 and repurchased $2.66 billion worth of common stock in 2024 [11]. - **Bain Capital Specialty Finance (BCSF)**: - Provides a high dividend yield of 11.59% and has increased its dividend payout four times in the past five years, with an annualized growth rate of 6.4% [13]. - Reduced its debt from $1.46 billion in 2020 to $1.39 billion in 2024, indicating a focus on long-term financial stability [14]. - **CSX**: - Has a dividend yield of approximately 1.57% and has increased its dividend payout five times over the past five years, resulting in an annualized growth rate of 8.9% [15]. - Repurchased shares worth $2.2 billion in 2024 and had $2.6 billion in total repurchase authority remaining as of December 31, 2024 [16]. - **Verizon Communications (VZ)**: - Offers a dividend yield of around 6.28% and has increased its dividend payout six times in the past five years, reflecting an annualized growth rate of almost 2% [17]. - Reduced long-term debt from $123.17 billion in 2020 to $121.38 billion in December 2024, maintaining a solid balance sheet [18].

Group 1 - Britain's International Personal Finance received a takeover proposal of 514.9 million pounds ($693.31 million) from U.S.-based BasePoint Capital [1]

Core Insights - Standard Premium Finance Holdings, Inc. has appointed Renee Magness as senior account executive to support its strategic expansion in the Midwest region [1][3] - Magness has over fifteen years of experience in premium finance, managing receivables portfolios valued over $100 million and maintaining industry-leading cancellation ratios [2] - The company has financed premiums on over $2 billion of property and casualty insurance policies since 1991 and operates in 38 states [4] Company Strategy - The appointment of Magness is aimed at driving growth across the Midwest by leveraging her expertise in client development, operational excellence, and portfolio management [3] - The company is focused on expanding its footprint westward and deepening relationships with agents to capture new opportunities [3] - Standard Premium is also seeking M&A opportunities with synergistic businesses to leverage economies of scale [4]

Core Viewpoint - KKR is acquiring NewDay's portfolio of consumer credit receivables from Cinven and CVC Capital Partners, although financial terms of the transaction remain undisclosed [2] Group 1 - KKR is a publicly traded company listed on NYSE under the ticker KKR [2] - NewDay is a UK-based specialty finance company [2] - The acquisition involves consumer credit receivables, indicating a focus on the financial services sector [2] Group 2 - The sellers of the portfolio are private equity firms Cinven and CVC Capital Partners [2] - The transaction highlights ongoing consolidation in the specialty finance industry [2] - The portfolios will continue to operate under NewDay, suggesting a strategic retention of brand and operational structure post-acquisition [2]

Core Points - MFA Financial, Inc. has declared a regular quarterly cash dividend of $0.36 per share of common stock [1] - The dividend payment is scheduled for October 31, 2025, to stockholders of record as of September 30, 2025 [1] - MFA Financial, Inc. specializes in investing in residential mortgage loans, residential mortgage-backed securities, and other real estate assets [1]

Core Viewpoint - Saratoga Investment Corp. has declared a base quarterly dividend of $0.75 per share for the third quarter of fiscal 2026, maintaining a consistent dividend policy to provide attractive returns to shareholders [1][2]. Dividend Declaration - The declared dividends for the third quarter of fiscal 2026 are as follows: - September 2025: $0.25 per share, record date October 7, 2025, payment date October 23, 2025 - October 2025: $0.25 per share, record date November 4, 2025, payment date November 20, 2025 - November 2025: $0.25 per share, record date December 2, 2025, payment date December 18, 2025 [1][2]. Dividend Yield - The annualized dividend rate of $0.75 per share implies a 12.2% dividend yield based on the stock price of $24.54 as of September 9, 2025 [1]. Historical Dividend Distributions - The total dividend for fiscal year 2026 is projected to be $2.25 per share, with consistent quarterly distributions of $0.25 per share [3]. Company Overview - Saratoga Investment is a specialty finance company focused on providing customized financing solutions to U.S. middle-market businesses, primarily investing in senior and unitranche leveraged loans and mezzanine debt [5]. - The company is regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC [5]. - Saratoga Investment manages a $500 million collateralized loan obligation (CLO) fund and co-manages a joint venture fund with a $400 million CLO [5].

Core Viewpoint - Great Elm Capital Corp. (GECC) has announced a public offering of $50 million in 7.75% notes due 2030, with net proceeds expected to be approximately $48.1 million after expenses [1][4]. Group 1: Offering Details - The notes will mature on December 31, 2030, and can be redeemed by the company starting December 31, 2027 [2]. - Underwriters have a 30-day option to purchase an additional $7.5 million in notes to cover over-allotments [2]. - The transaction is subject to customary closing conditions, with expected delivery around September 11, 2025 [3]. Group 2: Use of Proceeds - The net proceeds will primarily be used to redeem all outstanding 8.75% notes due 2028 [4]. - Remaining proceeds may be allocated to redeem or repurchase other outstanding notes due in 2026 and 2029, repay borrowings under the revolving credit facility, or for general corporate purposes [4]. Group 3: Company Overview - Great Elm Capital Corp. is an externally managed business development company focused on generating income and capital appreciation through investments in debt and income-generating equity securities [9].

Core Viewpoint - The Russell 2000 has experienced a significant rebound of nearly +9% in the last month due to favorable macroeconomic conditions, including potential interest rate cuts and clearer tariff policies, which are expected to enhance investor sentiment towards small-cap U.S. companies [1]. Company Summaries Cars.com (CARS) - Cars.com stock is currently priced at $12, which is 40% below its 52-week high of $20. The company has faced challenges due to high interest rates, inflation, and tariffs impacting consumer demand for vehicles [2]. - Earnings estimates for Cars.com have seen slight upward revisions for fiscal years 2025 and 2026. The stock trades at 7X forward earnings, with EPS expected to increase by 4% this year and projected to rise by 32% in FY26 to $2.35. The Average Zacks Price Target of $17.17 indicates a potential upside of nearly 35% [3]. OppFi (OPFI) - OppFi is priced at $10 and has gained over +30% year-to-date, yet remains 40% below its 52-week high of $17. Analysts maintain a bullish outlook, with an Average Zacks Price Target of $14 suggesting a 36% upside [8]. - The stock trades at 7X forward earnings, with FY25 EPS expected to increase by 49% to $1.49. Recent revisions have shown a 15% increase in FY25 EPS estimates following strong Q2 earnings results. Annual earnings are projected to rise by 4% in FY26 to $1.48 per share, supported by sales projections exceeding $600 million [9][10]. Quad Graphics (QUAD) - Quad Graphics is trading at $6, just above penny stock status, and is a provider of commercial printing solutions. The Average Zacks Price Target suggests a potential return to its 52-week peak of $9 [12]. - The company is profitable and trades at 6X forward earnings. EPS revisions have increased, forecasting a 13% rise in FY25 and a further 15% increase in FY26 to $1.11 per share. Additionally, Quad Graphics offers a 4.5% annual dividend yield [13][14]. Conclusion - The favorable macroeconomic environment is expected to accelerate growth for these companies, making them attractive investment opportunities within the Russell 2000 [15].

Core Insights - Standard Premium Finance Holdings, Inc. has released a white paper discussing the importance of federal insurance programs in mitigating the impact of natural disasters, authored by CEO William Koppelmann [1] - The report emphasizes the increasing frequency of weather-related disasters and the necessity for expanded federal insurance coverage [2] Company Overview - Standard Premium Finance Holdings, Inc. has financed premiums on over $2 billion of property and casualty insurance policies since 1991 and operates in 38 states [3] - The company is actively seeking mergers and acquisitions to leverage economies of scale [3] Industry Context - The current disaster infrastructure in the U.S. is underprepared, as highlighted by recent catastrophic flooding in Texas and the upcoming hurricane season [2] - There is a critical need for more comprehensive federal disaster insurance coverage to manage financial risks associated with natural disasters [2] - Insurers are withdrawing from markets or raising premiums to unsustainable levels, indicating a gap in the existing federal safety net for disaster coverage [3]