Horizon Technology Finance Corporation (NASDAQ:HRZN) Plans $0.11 Monthly Dividend

Key Points

• Horizon Technology Finance Corporation has announced a monthly dividend of $0.11 per share, with the payment scheduled for November 14th to shareholders of record by October 16th.
• The company indicated a concerning dividend payout ratio of 114.8%, suggesting it is currently relying on its balance sheet rather than earnings to fund dividends.
• For the current fiscal year, analysts project the company will achieve $1.38 EPS, but its annual dividend may exceed expected earnings, raising questions about sustainability.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) announced a monthly dividend on Tuesday, August 5th. Shareholders of record on Thursday, October 16th will be paid a dividend of 0.11 per share by the investment management company on Friday, November 14th. This represents a c) annualized dividend and a yield of 21.7%. The ex-dividend date is Thursday, October 16th.

Horizon Technology Finance has a dividend payout ratio of 114.8% indicating that 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 Trading Up 3.2%

Shares of Horizon Technology Finance stock opened at $6.09 on Tuesday. The company's 50-day moving average price is $6.72 and its two-hundred day moving average price is $7.46. The stock has a market cap of $259.13 million, a PE ratio of -5.30 and a beta of 1.00. Horizon Technology Finance has a 52 week low of $5.85 and a 52 week high of $10.69.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The investment management company reported $0.28 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.28. The firm had revenue of ($9.89) million for the quarter, compared to the consensus estimate of $24.54 million. Horizon Technology Finance had a positive return on equity of 14.02% and a negative net margin of 48.76%. On average, equities analysts predict that Horizon Technology Finance will post 1.38 EPS 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.

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