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

Key Points

• BCSF declared a quarterly dividend of $0.42 per share, payable December 29 to shareholders of record December 15—an annualized $1.68 and a stated yield of 15.3%.
• The dividend may be difficult to sustain: the payout ratio is 101.8%, and analysts expect next-year earnings of $1.40 per share versus $1.68 in annual dividends.
• The company reported quarterly EPS of $0.43, matching estimates, but revenue of $39.71 million fell short of the $61.03 million consensus. Analysts’ consensus rating is Hold, with a $12.60 price target.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report) declared a quarterly dividend on Monday, November 9th. Stockholders of record on Tuesday, December 15th will be given a dividend of $0.42 per share on Tuesday, December 29th. This represents a $1.68 annualized dividend and a dividend yield of 15.3%. The ex-dividend date is Tuesday, December 15th.

Bain Capital Specialty Finance has raised its dividend by an average of 0.1% per year over the last three years and has raised its dividend every year for the last 4 years. Bain Capital Specialty Finance has a dividend payout ratio of 101.8% indicating that 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 $1.40 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 120.0%.

Bain Capital Specialty Finance Price Performance

BCSF stock opened at $10.98 on Tuesday. The stock has a 50-day moving average price of $10.98 and a two-hundred day moving average price of $12.38. The stock has a market cap of $712.14 million, a PE ratio of 11.09 and a beta of 0.59. The company has a current ratio of 7.20, a quick ratio of 7.20 and a debt-to-equity ratio of 1.39. Bain Capital Specialty Finance has a 1 year low of $9.99 and a 1 year high of $14.70.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last released its earnings results on Monday, November 9th. The company reported $0.43 earnings per share for the quarter, meeting analysts' consensus estimates of $0.43. The business had revenue of $39.71 million during the quarter, compared to the consensus estimate of $61.03 million. Bain Capital Specialty Finance had a net margin of 24.22% and a return on equity of 10.40%. Equities analysts forecast that Bain Capital Specialty Finance will post 1.64 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Noble Financial assumed coverage on shares of Bain Capital Specialty Finance in a research note on Friday, September 18th. They issued a "neutral" rating on the stock. Loop Capital set a $12.50 price target on shares of Bain Capital Specialty Finance in a report on Friday, September 18th. Zacks Research upgraded shares of Bain Capital Specialty Finance from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 13th. Jefferies Financial Group set a $13.00 price objective on Bain Capital Specialty Finance in a report on Monday, August 17th. Finally, Wells Fargo & Company decreased their target price on Bain Capital Specialty Finance from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research report on Wednesday, August 12th. Four analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $12.60.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc NYSE: BCSF is a business development company that provides financing to middle-market companies. The company primarily invests in privately negotiated debt investments, with an emphasis on senior secured loans, including first-lien and unitranche facilities. It may also invest in second-lien debt and, to a lesser extent, equity securities.

BCSF seeks to support companies that are generally sponsored by private equity firms and operates across a range of industries.

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