Bain Capital Specialty Finance, Inc. Announces Quarterly Dividend of $0.42 (NYSE:BCSF)

Key Points

• Bain Capital Specialty Finance declared a quarterly dividend of $0.42 per share, payable September 29 to shareholders of record on September 15. The dividend implies an annualized yield of approximately 13.0%.
• The dividend appears financially stretched: the company’s payout ratio is 101.8%, while analysts expect next year’s earnings of $1.51 per share versus $1.68 in annual dividends.
• BCSF reported quarterly EPS of $0.44, beating estimates by $0.02, although revenue of $47.8 million fell short of the $64.44 million consensus estimate. Shares opened at $12.95, down 1.2%.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report) declared a quarterly dividend on Monday, August 10th. Investors of record on Tuesday, September 15th will be paid a dividend of 0.42 per share on Tuesday, September 29th. This represents a c) dividend on an annualized basis and a yield of 13.0%. The ex-dividend date is Tuesday, September 15th.

Bain Capital Specialty Finance has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Bain Capital Specialty Finance has a payout ratio of 101.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Bain Capital Specialty Finance to earn $1.51 per share next year, which means the company may not be able to cover its $1.68 annual dividend with an expected future payout ratio of 111.3%.

Bain Capital Specialty Finance Trading Down 1.2%

NYSE BCSF opened at $12.95 on Tuesday. Bain Capital Specialty Finance has a 52 week low of $11.82 and a 52 week high of $15.84. The firm has a 50 day moving average of $12.65 and a two-hundred day moving average of $12.92. The company has a quick ratio of 2.17, a current ratio of 2.17 and a debt-to-equity ratio of 1.33. The stock has a market capitalization of $840.07 million, a PE ratio of 11.36 and a beta of 0.58.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.02. The business had revenue of $47.80 million during the quarter, compared to analysts' expectations of $64.44 million. Bain Capital Specialty Finance had a net margin of 27.00% and a return on equity of 10.44%. As a group, research analysts expect that Bain Capital Specialty Finance will post 1.67 EPS for the current fiscal year.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance NYSE: BCSF is a closed-end interval fund organized as a specialty finance company. Since commencing operations in March 2017, the company has focused on originating and acquiring debt and equity investments in middle-market companies. It is structured to offer investors access to private credit and special situations strategies that are typically unavailable through traditional public debt markets.

The firm's core business activities include direct lending to U.S.

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