Fidus Investment Corporation (NASDAQ:FDUS) Shares Set to Pay Quarterly Dividend of $0.43

Key Points

• Fidus Investment declared a quarterly dividend of $0.43 per share, payable December 29 to shareholders of record December 18. The payment annualizes to $1.72 per share, an indicated yield of 8.8%.
• The current dividend is covered by earnings, with a payout ratio of 79.3%; analysts expect next year’s earnings to cover the annual dividend, though the projected payout ratio would rise to 85.1%.
• Fidus reported quarterly earnings of $0.54 per share, beating the $0.51 analyst consensus, and revenue of $45.91 million, above expectations of $44.31 million.

Fidus Investment Corporation (NASDAQ:FDUS - Get Free Report) declared a quarterly dividend on Thursday, November 5th. Investors of record on Friday, December 18th will be paid a dividend of $0.43 per share by the asset manager on Tuesday, December 29th. This represents a $1.72 annualized dividend and a yield of 8.8%. The ex-dividend date is Friday, December 18th.

Fidus Investment has raised its dividend payment by an average of 0.1% annually over the last three years. Fidus Investment has a payout ratio of 79.3% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities research analysts expect Fidus Investment to earn $2.02 per share next year, which means the company should continue to be able to cover its $1.72 annual dividend with an expected future payout ratio of 85.1%.

Fidus Investment Price Performance

Fidus Investment stock opened at $19.50 on Friday. Fidus Investment has a 12 month low of $16.86 and a 12 month high of $20.95. The company has a fifty day moving average price of $19.24 and a two-hundred day moving average price of $18.96. The company has a market cap of $740.10 million, a PE ratio of 9.33 and a beta of 0.71.

Fidus Investment (NASDAQ:FDUS - Get Free Report) last issued its earnings results on Thursday, November 5th. The asset manager reported $0.54 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.03. Fidus Investment had a net margin of 45.36% and a return on equity of 10.87%. The company had revenue of $45.91 million for the quarter, compared to analysts' expectations of $44.31 million. Equities research analysts anticipate that Fidus Investment will post 2.16 earnings per share for the current year.

Hedge Funds Weigh In On Fidus Investment

Several hedge funds and other institutional investors have recently modified their holdings of the company. Riverbridge Partners LLC boosted its position in shares of Fidus Investment by 35.5% during the third quarter. Riverbridge Partners LLC now owns 150,241 shares of the asset manager's stock worth $2,895,000 after buying an additional 39,372 shares during the period. Commonwealth Equity Services LLC increased its position in Fidus Investment by 5.7% in the 3rd quarter. Commonwealth Equity Services LLC now owns 38,370 shares of the asset manager's stock valued at $739,000 after acquiring an additional 2,084 shares during the period. Laurel Wealth Advisors LLC acquired a new stake in Fidus Investment in the 3rd quarter valued at approximately $30,000. Secure Asset Management LLC increased its position in Fidus Investment by 4.9% in the 3rd quarter. Secure Asset Management LLC now owns 24,883 shares of the asset manager's stock valued at $479,000 after acquiring an additional 1,155 shares during the period. Finally, Sound Income Strategies LLC raised its stake in Fidus Investment by 2,909.2% during the 3rd quarter. Sound Income Strategies LLC now owns 2,193,829 shares of the asset manager's stock valued at $41,880,000 after acquiring an additional 2,120,925 shares in the last quarter. Institutional investors and hedge funds own 28.14% of the company's stock.

Fidus Investment Company Profile

Fidus Investment Corporation NASDAQ: FDUS is a business development company that provides financing to privately owned, lower middle-market companies in the United States. The company supports businesses that may have limited access to traditional bank financing and seeks to generate income through a portfolio of corporate investments.

Fidus primarily invests in secured debt, including first-lien and second-lien loans, as well as mezzanine debt and, in some cases, equity interests. Its portfolio companies operate across a range of industries, allowing Fidus to provide customized financing for acquisitions, recapitalizations, growth initiatives and other corporate purposes.

Fidus Investment Corporation is externally managed by Fidus Investment Advisors, LLC.

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