Eagle Point Credit Company Inc. (NYSE:ECC) to Issue $0.14 Monthly Dividend

Key Points

• Eagle Point Credit Company Inc. will issue a monthly dividend of $0.14 per share, representing an annualized yield of 24.6%, with the payment date set for December 31st for shareholders of record on December 11th.
• The company has a dividend payout ratio of 178.7%, indicating that it is currently unable to cover its dividend with earnings and is relying on its balance sheet to make payments.
• Eagle Point Credit recently reported earnings of $0.28 per share, exceeding analysts’ expectations but faced a negative net margin of 27.15% for the quarter.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report) announced a monthly dividend on Wednesday, August 13th, Wall Street Journal reports. Investors of record on Thursday, December 11th will be paid a dividend of 0.14 per share by the investment management company on Wednesday, December 31st. This represents a c) dividend on an annualized basis and a dividend yield of 24.8%. The ex-dividend date is Thursday, December 11th.

Eagle Point Credit has a dividend payout ratio of 178.7% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Eagle Point Credit to earn $1.10 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 152.7%.

Eagle Point Credit Trading Up 0.9%

ECC stock traded up $0.06 during mid-day trading on Monday, reaching $6.77. The company had a trading volume of 665,200 shares, compared to its average volume of 2,352,611. The firm has a 50 day moving average of $7.28 and a 200 day moving average of $7.77. The company has a market capitalization of $520.95 million, a PE ratio of 61.55 and a beta of 0.38. Eagle Point Credit has a 12 month low of $6.00 and a 12 month high of $10.06. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Eagle Point Credit (NYSE:ECC - Get Free Report) last released its quarterly earnings results on Wednesday, May 28th. The investment management company reported $0.28 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.02. Eagle Point Credit had a return on equity of 13.49% and a net margin of 6.73%. The company had revenue of $52.30 million during the quarter, compared to analysts' expectations of $53.54 million. On average, equities analysts predict that Eagle Point Credit will post 1.1 earnings per share for the current fiscal year.

Institutional Trading of Eagle Point Credit

Institutional investors have recently bought and sold shares of the company. AdvisorNet Financial Inc purchased a new stake in Eagle Point Credit in the 1st quarter valued at about $25,000. GPS Wealth Strategies Group LLC acquired a new stake in shares of Eagle Point Credit in the second quarter valued at about $25,000. IFP Advisors Inc purchased a new stake in shares of Eagle Point Credit during the second quarter valued at approximately $28,000. Cape Investment Advisory Inc. lifted its holdings in Eagle Point Credit by 91.2% in the 1st quarter. Cape Investment Advisory Inc. now owns 3,592 shares of the investment management company's stock worth $29,000 after buying an additional 1,713 shares in the last quarter. Finally, NBC Securities Inc. acquired a new stake in Eagle Point Credit during the 1st quarter valued at approximately $32,000. 19.50% of the stock is currently owned by hedge funds and other institutional investors.

About Eagle Point Credit

Eagle Point Credit Company Inc is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S.