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

Key Points

• Great Elm Capital Group declared a quarterly dividend of $0.25 per share, payable September 30 to shareholders of record on September 15. The dividend implies a $1.00 annualized payout and an 18.3% yield.
• Although the current payout ratio is 62.9%, analysts expect next year’s earnings of $0.84 per share versus the $1.00 annual dividend, implying a potentially unsustainable future payout ratio of 119%.
• GECC’s shares opened at $5.48 after rising 6.2%; its latest quarterly earnings of $0.32 per share missed estimates, while revenue of $14.74 million exceeded expectations.

Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) declared a quarterly dividend on Wednesday, August 5th. Shareholders of record on Tuesday, September 15th will be given a dividend of 0.25 per share by the financial services provider on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 18.3%. The ex-dividend date of this dividend is Tuesday, September 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 every year for the last 2 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 $0.84 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 119.0%.

Great Elm Capital Group Stock Up 6.2%

GECC opened at $5.48 on Thursday. The business's fifty day simple moving average is $5.53 and its 200 day simple moving average is $5.77. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 1.57. Great Elm Capital Group has a 52 week low of $4.63 and a 52 week high of $11.45. The stock has a market cap of $76.10 million, a PE ratio of -2.25 and a beta of 0.77.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.32 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.03). Great Elm Capital Group had a negative net margin of 70.13% and a positive return on equity of 14.16%. The firm had revenue of $14.74 million for the quarter, compared to the consensus estimate of $11.32 million. As a group, research analysts expect that Great Elm Capital Group will post 1.1 earnings per share for the current fiscal year.

About Great Elm Capital Group

Great Elm Capital Group, Inc NASDAQ: GECC is a closed-end, externally managed business development company (BDC) that seeks to generate current income and capital appreciation by investing in private, middle-market companies. The firm targets senior secured loans, subordinated debt and equity securities of U.S. companies, with a focus on businesses offering stable cash flows and potential for growth. Industry sectors of interest include business services, consumer products, industrials and healthcare, among others.

GECC's investment strategy emphasizes portfolio diversification and active management.

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