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

Key Points

• Great Elm declared a quarterly dividend of $0.25 per share, payable June 30 to shareholders of record on June 15, which annualizes to about $1.00 and implies a ~18.1% yield at the current share price.
• Dividend sustainability is a concern: the payout ratio is currently about 75.5% (covered by earnings now), but analysts' expected EPS of $0.84 next year implies a payout ratio near 142.9%, meaning the dividend may not be coverable if estimates hold.
• The company beat quarterly EPS estimates ($0.36 vs. $0.23) but reported negative revenue and a net margin of -63.6%, alongside weak liquidity (current and quick ratios of 0.24), a small market cap, and a negative PE, signaling underlying financial strain.

Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) declared a quarterly dividend on Monday, May 4th. Stockholders of record on Monday, June 15th will be paid a dividend of 0.25 per share by the financial services provider on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 18.1%. The ex-dividend date is Monday, June 15th.

Great Elm Capital Group has decreased its dividend payment by an average of 0.2%annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Great Elm Capital Group has a dividend payout ratio of 75.5% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. 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 $1.20 annual dividend with an expected future payout ratio of 142.9%.

Great Elm Capital Group Price Performance

Shares of Great Elm Capital Group stock opened at $5.53 on Tuesday. The company has a current ratio of 0.24, a quick ratio of 0.24 and a debt-to-equity ratio of 1.68. The firm has a market capitalization of $76.82 million, a PE ratio of -2.40 and a beta of 0.72. The business's 50-day moving average price is $5.43 and its 200-day moving average price is $6.61. Great Elm Capital Group has a 12 month low of $4.63 and a 12 month high of $11.45.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The financial services provider reported $0.36 EPS for the quarter, beating the consensus estimate of $0.23 by $0.13. The firm had revenue of ($1.91) million for the quarter, compared to analyst estimates of $10.74 million. Great Elm Capital Group had a positive return on equity of 13.19% and a negative net margin of 63.59%. Sell-side analysts forecast that Great Elm Capital Group will post 0.93 EPS 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.