FS KKR Capital Corp. (NYSE:FSK) Declares Quarterly Dividend of $0.44

Key Points

• FS KKR Capital declared a quarterly dividend of $0.44 per share, up 4.8% from $0.42. Shareholders of record on September 16 will receive payment on October 2, representing an annualized yield of approximately 14.8%.
• The dividend is currently supported by a 69.1% payout ratio, but analysts expect next year’s earnings of $1.54 per share versus annual dividends of $1.68, implying a potentially unsustainable 109.1% future payout ratio.
• FSK’s latest quarterly results modestly exceeded expectations, with EPS of $0.43 versus the $0.42 consensus and revenue of $290 million. Analysts remain cautious, assigning the stock an average “Reduce” rating and a consensus price target of $10.58.

FS KKR Capital Corp. (NYSE:FSK - Get Free Report) declared a quarterly dividend on Wednesday, August 5th. Stockholders of record on Wednesday, September 16th will be paid a dividend of 0.44 per share on Friday, October 2nd. This represents a c) annualized dividend and a dividend yield of 14.8%. The ex-dividend date of this dividend is Wednesday, September 16th. This is a 4.8% increase from FS KKR Capital's previous quarterly dividend of $0.42.

FS KKR Capital has increased its dividend payment by an average of 0.0%per year over the last three years. FS KKR Capital has a payout ratio of 69.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect FS KKR Capital to earn $1.54 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 109.1%.

FS KKR Capital Price Performance

Shares of FS KKR Capital stock traded up $0.83 on Thursday, reaching $11.87. 5,393,308 shares of the stock were exchanged, compared to its average volume of 3,410,188. The firm's 50 day moving average is $10.70 and its 200-day moving average is $11.27. The firm has a market cap of $3.33 billion, a PE ratio of -6.03 and a beta of 0.83. The company has a debt-to-equity ratio of 1.38, a quick ratio of 2.00 and a current ratio of 2.00. FS KKR Capital has a one year low of $9.72 and a one year high of $19.24.

FS KKR Capital (NYSE:FSK - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.43 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.01. The company had revenue of $290.00 million during the quarter, compared to analysts' expectations of $286.75 million. FS KKR Capital had a positive return on equity of 4.34% and a negative net margin of 38.65%.During the same quarter in the previous year, the firm earned ($0.75) EPS. As a group, analysts anticipate that FS KKR Capital will post 1.64 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on FSK. Keefe, Bruyette & Woods lowered their price objective on shares of FS KKR Capital from $15.00 to $11.00 and set a "market perform" rating for the company in a research report on Thursday, April 16th. Weiss Ratings reiterated a "sell (d+)" rating on shares of FS KKR Capital in a report on Tuesday, June 2nd. Wall Street Zen upgraded FS KKR Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $11.00 price target on shares of FS KKR Capital in a research report on Tuesday, May 12th. Finally, Wells Fargo & Company dropped their price objective on shares of FS KKR Capital from $11.00 to $10.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 12th. Six analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $10.58.

About FS KKR Capital

FS KKR Capital Corp NYSE: FSK is a closed-end, externally managed business development company that primarily invests in private middle-market U.S. companies. The firm seeks to generate current income and capital appreciation by structuring investments in floating-rate senior secured loans, unitranche financings, second lien debt and mezzanine instruments. As a business development company, FSK provides financing solutions designed to support growth initiatives, acquisitions, leveraged buyouts and recapitalizations for privately held enterprises.

Established in 2018 through a strategic partnership between FS Investment Corporation and KKR Credit Advisors, a division of global investment firm KKR & Co Inc, FSK combines the credit underwriting capabilities of KKR’s global platform with FS’s expertise in private credit markets.

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