Eagle Point Credit Company Inc. Declares Monthly Dividend of $0.06 (NYSE:ECC)

Key Points

• Eagle Point Credit declared a monthly dividend of $0.06 per share, payable October 30 to shareholders of record October 13. The dividend implies approximately $0.72 annually and an 18.6% yield.
• The dividend appears financially stretched: the company has a 136.2% payout ratio, while analysts expect $0.71 in next-year earnings versus $1.28 in annual dividends.
• ECC shares rose 1.4% to $3.88, but the company reported quarterly EPS of $0.17, missing analyst expectations of $0.18.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report) declared a monthly dividend on Thursday, August 13th. Shareholders of record on Tuesday, October 13th will be given a dividend of 0.06 per share by the investment management company on Friday, October 30th. This represents a c) annualized dividend and a dividend yield of 18.6%. The ex-dividend date is Tuesday, October 13th.

Eagle Point Credit has increased its dividend payment by an average of 0.1%per year over the last three years. Eagle Point Credit has a payout ratio of 136.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Eagle Point Credit to earn $0.71 per share next year, which means the company may not be able to cover its $1.28 annual dividend with an expected future payout ratio of 180.3%.

Eagle Point Credit Trading Up 1.4%

NYSE:ECC traded up $0.06 during midday trading on Thursday, reaching $3.88. 1,096,287 shares of the stock traded hands, compared to its average volume of 1,591,860. The stock has a market capitalization of $512.31 million, a P/E ratio of 5.78 and a beta of 0.36. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.23 and a current ratio of 0.23. The company has a fifty day moving average of $3.79 and a 200 day moving average of $4.05. Eagle Point Credit has a 12 month low of $3.46 and a 12 month high of $7.77.

Eagle Point Credit (NYSE:ECC - Get Free Report) last announced its earnings results on Thursday, August 13th. The investment management company reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01). Eagle Point Credit had a negative net margin of 87.16% and a negative return on equity of 1.09%. On average, research analysts predict that Eagle Point Credit will post 0.71 EPS for the current year.

Eagle Point Credit Company Profile

Eagle Point Credit Company is a closed-end, non-diversified management investment company that seeks to generate attractive risk-adjusted returns primarily through investments in collateralized loan obligations (CLOs) and related structured credit instruments. The firm is externally managed by Eagle Point Credit Management, LLC, a specialized credit asset manager focused on the structured credit markets. Eagle Point Credit Company’s shares trade on the New York Stock Exchange under the ticker symbol ECC.

The company’s investment strategy centers on acquiring both equity and debt tranches of actively managed CLOs alongside opportunistic positions in senior secured loans, high-yield bonds and credit derivatives.

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