FS KKR Capital Corp. (NYSE:FSK) Announces Special Dividend of $0.20

Key Points

• FS KKR Capital declared a $0.20-per-share special dividend, payable December 24 to shareholders of record on December 16; the stock’s ex-dividend date is also December 16.
• The regular dividend appears adequately covered currently, with a 72.4% payout ratio, but analysts project a potential 116.6% future payout ratio based on expected earnings, raising coverage concerns.
• FSK recently exceeded quarterly earnings expectations, reporting $0.43 EPS versus a $0.42 consensus estimate, while institutional investors owned 36.26% of the company.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) announced a special dividend on Wednesday, October 7th. Investors of record on Wednesday, December 16th will be given a dividend of $0.20 per share on Thursday, December 24th. This represents a yield of 1,633.0%. The ex-dividend date of this dividend is Wednesday, December 16th.

FS KKR Capital has increased its dividend payment by an average of 0.0%annually over the last three years. FS KKR Capital has a dividend payout ratio of 72.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect FS KKR Capital to earn $1.51 per share next year, which means the company may not be able to cover its $1.76 annual dividend with an expected future payout ratio of 116.6%.

FS KKR Capital Trading Up 0.3%

NYSE FSK opened at $10.78 on Friday. The firm has a market capitalization of $2.98 billion, a price-to-earnings ratio of -7.98 and a beta of 0.86. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.28 and a current ratio of 2.28. FS KKR Capital has a one year low of $9.72 and a one year high of $16.31. The company's 50 day moving average price is $11.73 and its 200 day moving average price is $11.05.

FS KKR Capital (NYSE:FSK - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.01. FS KKR Capital had a negative net margin of 28.52% and a positive return on equity of 9.70%. The company had revenue of $290.00 million during the quarter, compared to the consensus estimate of $286.75 million. During the same period in the previous year, the firm earned ($0.75) earnings per share. On average, sell-side analysts predict that FS KKR Capital will post 1.64 EPS for the current year.

Institutional Trading of FS KKR Capital

A number of hedge funds and other institutional investors have recently modified their holdings of FSK. Saba Capital Management L.P. purchased a new stake in FS KKR Capital during the 1st quarter worth approximately $35,729,000. Legal & General Group Plc acquired a new position in shares of FS KKR Capital in the 2nd quarter valued at approximately $28,742,000. Silver Point Capital L.P. purchased a new position in shares of FS KKR Capital during the 2nd quarter valued at approximately $28,602,000. Cura Wealth Advisors LLC purchased a new position in shares of FS KKR Capital during the 2nd quarter valued at approximately $22,391,000. Finally, Rivernorth Capital Management LLC grew its position in shares of FS KKR Capital by 580.7% during the first quarter. Rivernorth Capital Management LLC now owns 2,097,170 shares of the company's stock worth $21,349,000 after buying an additional 1,789,090 shares in the last quarter. 36.26% of the stock is owned by hedge funds and other institutional investors.

FS KKR Capital Company Profile

FS KKR Capital Corp. NYSE: FSK is a business development company that provides financing to privately owned middle-market companies. The company primarily invests in senior secured loans, including first-lien and second-lien debt, and may also make select equity investments. Its portfolio companies operate across a range of industries and are generally located in the United States.

FSK seeks to generate income and long-term capital appreciation by partnering with companies that require financing for acquisitions, recapitalizations, growth initiatives, refinancing and other corporate purposes.

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