Horizon Technology Finance Corporation to Issue Monthly Dividend of $0.11 (NASDAQ:HRZN)

Key Points

• Horizon Technology Finance Corporation declared a monthly dividend of $0.11 per share, with an annualized dividend yield of 18.4%, payable on December 16th to investors of record on November 17th.
• The company has a high dividend payout ratio of 114.8%, indicating it is relying on its balance sheet rather than earnings to meet its dividend obligations.
• Despite having reported earnings of $0.28 per share, Horizon's stock is currently rated as a "Hold" by analysts, with a consensus target price of $7.30.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) announced a monthly dividend on Wednesday, August 13th, Wall Street Journal reports. Stockholders of record on Monday, November 17th will be paid a dividend of 0.11 per share by the investment management company on Tuesday, December 16th. This represents a c) dividend on an annualized basis and a dividend yield of 18.7%. The ex-dividend date of this dividend is Monday, November 17th.

Horizon Technology Finance has a payout ratio of 114.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Horizon Technology Finance to earn $1.26 per share next year, which means the company may not be able to cover its $1.32 annual dividend with an expected future payout ratio of 104.8%.

Horizon Technology Finance Stock Performance

Shares of NASDAQ:HRZN traded down $0.08 during trading on Friday, reaching $7.06. The company had a trading volume of 1,111,653 shares, compared to its average volume of 566,070. The firm's fifty day moving average is $7.65 and its 200 day moving average is $8.29. The firm has a market capitalization of $300.40 million, a PE ratio of -6.14 and a beta of 0.99. Horizon Technology Finance has a twelve month low of $6.77 and a twelve month high of $11.29.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The investment management company reported $0.28 earnings per share for the quarter, hitting analysts' consensus estimates of $0.28. The company had revenue of ($9.89) million during the quarter, compared to analyst estimates of $24.54 million. Horizon Technology Finance had a negative net margin of 48.76% and a positive return on equity of 14.02%. Equities analysts predict that Horizon Technology Finance will post 1.38 earnings per share for the current fiscal year.

About Horizon Technology Finance

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries.