Fidus Investment Corporation (NASDAQ:FDUS) Plans Special Dividend of $0.19

Key Points

• Fidus Investment Corporation declared a special dividend of $0.19 per share; investors of record on June 16 will be paid on June 29 (ex-dividend date June 16).
• The dividend currently has a payout ratio of 79.3%, and analysts forecast 2026 EPS of $1.98 (implying a future payout ratio of 86.9%), suggesting the dividend is covered now but could be pressured if earnings slip.
• Shares jumped about 4.9% on the news; FDUS trades at a PE of 8.27 with a ~$734.5M market cap and carries a "Moderate Buy" consensus with a $21 average target.

Fidus Investment Corporation (NASDAQ:FDUS - Get Free Report) declared a special dividend on Thursday, May 7th. Investors of record on Tuesday, June 16th will be paid a dividend of 0.19 per share by the asset manager on Monday, June 29th. The ex-dividend date is Tuesday, June 16th.

Fidus Investment has increased its dividend payment by an average of 0.1%annually over the last three years. Fidus Investment has a dividend 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 decline. Equities analysts expect Fidus Investment to earn $1.98 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 86.9%.

Fidus Investment Stock Up 4.9%

Shares of FDUS stock opened at $19.36 on Friday. The stock has a market capitalization of $734.52 million, a PE ratio of 8.27 and a beta of 0.69. Fidus Investment has a 52-week low of $16.86 and a 52-week high of $22.09. The stock's 50-day moving average price is $18.09 and its 200 day moving average price is $19.07.

Fidus Investment (NASDAQ:FDUS - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The asset manager reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.04. Fidus Investment had a return on equity of 10.71% and a net margin of 52.87%.The firm had revenue of $32.73 million for the quarter, compared to analysts' expectations of $39.46 million. Analysts expect that Fidus Investment will post 2.02 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Separately, Keefe, Bruyette & Woods lowered their price objective on Fidus Investment from $20.00 to $19.50 and set an "outperform" rating on the stock in a report on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $21.00.

Fidus Investment Company Profile

Fidus Investment Corporation NASDAQ: FDUS is a closed-end, externally managed business development company (BDC) that provides specialized financing solutions to U.S. middle-market companies. Operated by Fidus Investment Advisors, LLC, a registered investment adviser, the company is regulated under the Investment Company Act of 1940 and trades on the Nasdaq Capital Market.

The firm focuses on structuring senior secured and unitranche loans, mezzanine debt and equity investments for established businesses across a range of industries.

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