OFS Capital Corporation to Issue Quarterly Dividend of $0.17 (NASDAQ:OFS)

Key Points

• OFS Capital declared a quarterly dividend of $0.17 per share (ex-dividend June 18, record June 19, payable July 6), which annualizes to a 17.0% yield.
• The dividend has been raised for three consecutive years but grew only ~0.1% per year on average and carries a payout ratio of 87.2%, suggesting the payout could be at risk if earnings weaken.
• In the latest quarter OFS missed estimates (EPS $0.18 vs. $0.21, revenue $3.57M vs. $9.45M), reported a negative net margin of 81.3%, and shows weak liquidity (current ratio 0.02), pointing to financial strain despite the high yield.

OFS Capital Corporation (NASDAQ:OFS - Get Free Report) announced a quarterly dividend on Thursday, April 30th. Shareholders of record on Friday, June 19th will be paid a dividend of 0.17 per share by the investment management company on Monday, July 6th. This represents a c) dividend on an annualized basis and a yield of 17.0%. The ex-dividend date of this dividend is Thursday, June 18th.

OFS Capital has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 3 consecutive years. OFS Capital has a dividend payout ratio of 87.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble.

OFS Capital Stock Performance

OFS stock traded down $0.05 during midday trading on Friday, hitting $4.00. 8,827 shares of the company traded hands, compared to its average volume of 93,064. OFS Capital has a twelve month low of $2.72 and a twelve month high of $9.31. The stock has a market capitalization of $53.58 million, a price-to-earnings ratio of -1.61 and a beta of 0.86. The company has a quick ratio of 0.02, a current ratio of 0.02 and a debt-to-equity ratio of 0.45. The business has a 50 day simple moving average of $3.72 and a 200-day simple moving average of $4.68.

OFS Capital (NASDAQ:OFS - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The investment management company reported $0.18 earnings per share for the quarter, missing analysts' consensus estimates of $0.21 by ($0.03). The firm had revenue of $3.57 million during the quarter, compared to analyst estimates of $9.45 million. OFS Capital had a positive return on equity of 8.75% and a negative net margin of 81.33%.

OFS Capital Company Profile

OFS Capital Corporation NASDAQ: OFS is a business development company (BDC) that provides customized debt and equity financing solutions to U.S. middle-market companies. As an externally managed BDC, OFS Capital focuses on sponsoring capital structures that support growth initiatives, recapitalizations, acquisitions and other strategic transactions. The firm targets companies that demonstrate strong cash flow potential and scalable business models across a range of industries.

The company's investment portfolio typically includes senior secured loans, unitranche facilities, mezzanine debt and equity co-investments.

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