Great Elm Capital Group, Inc. (NASDAQ:GECC) Announces Quarterly Dividend of $0.25

Key Points

• Great Elm Capital declared a quarterly dividend of $0.25 per share, payable December 31 to shareholders of record on December 15. The payment implies a $1.00 annualized dividend and a 20.0% yield.
• Although the current payout ratio is 62.9%, analysts expect next year’s earnings of $0.86 per share, which would put the projected dividend payout ratio at 116.3% and raise coverage concerns.
• Great Elm Capital reported quarterly EPS of $0.17, below the $0.18 consensus estimate, while revenue of $8.69 million also fell short of the $9.59 million forecast.

Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) declared a quarterly dividend on Monday, November 2nd. Shareholders of record on Tuesday, December 15th will be paid a dividend of $0.25 per share by the financial services provider on Thursday, December 31st. This represents a $1.00 annualized dividend and a yield of 20.0%. The ex-dividend date is Tuesday, December 15th.

Great Elm Capital Group has decreased its dividend payment by an average of 0.2% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Great Elm Capital Group has a payout ratio of 62.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Great Elm Capital Group to earn $0.86 per share next year, which means the company may not be able to cover its $1.00 annual dividend with an expected future payout ratio of 116.3%.

Great Elm Capital Group Price Performance

Shares of GECC opened at $5.00 on Tuesday. Great Elm Capital Group has a 1-year low of $4.63 and a 1-year high of $8.14. The stock has a market cap of $69.45 million, a PE ratio of 4.19 and a beta of 0.82. The firm has a 50-day simple moving average of $5.36 and a two-hundred day simple moving average of $5.68. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.93 and a quick ratio of 0.93.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The financial services provider reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). Great Elm Capital Group had a positive return on equity of 13.87% and a negative net margin of 87.74%. The company had revenue of $8.69 million during the quarter, compared to analyst estimates of $9.59 million. As a group, analysts forecast that Great Elm Capital Group will post 1.10 EPS for the current year.

About Great Elm Capital Group

Great Elm Capital Corp. NASDAQ: GECC is a closed-end, externally managed business development company that provides financing to middle-market companies. The company seeks to generate income and capital appreciation by investing primarily in privately negotiated debt securities, including senior secured loans, subordinated debt and other credit instruments.

In addition to debt investments, Great Elm Capital may invest in equity securities and other interests when appropriate. Its portfolio companies generally operate in a range of industries, and the company focuses primarily on businesses in the United States.

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