OFS Credit Company, Inc. Declares Monthly Dividend of $0.05 (NASDAQ:OCCI)

Key Points

• OFS Credit declared a monthly dividend of $0.05 per share, payable on August 31 to shareholders of record on August 14, with the ex-dividend date also set for August 14.
• The dividend implies an unusually high 25.8% annualized yield, but the company’s payout ratio of 136.0% suggests it is not fully covered by earnings and is being supported by its balance sheet.
• The stock was trading sharply lower, opening at $2.33 and marking a 7.5% decline, near its 12-month low of $2.33.

OFS Credit Company, Inc. (NASDAQ:OCCI - Get Free Report) declared a monthly dividend on Thursday, July 16th. Stockholders of record on Friday, August 14th will be paid a dividend of 0.05 per share on Monday, August 31st. This represents a c) dividend on an annualized basis and a dividend yield of 25.8%. The ex-dividend date of this dividend is Friday, August 14th.

OFS Credit has a payout ratio of 136.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

OFS Credit Stock Down 7.5%

Shares of NASDAQ OCCI opened at $2.33 on Friday. The company has a market capitalization of $68.43 million, a PE ratio of -1.91 and a beta of 0.71. The stock's 50 day moving average price is $2.98 and its 200-day moving average price is $3.41. OFS Credit has a twelve month low of $2.33 and a twelve month high of $6.28.

OFS Credit (NASDAQ:OCCI - Get Free Report) last issued its quarterly earnings results on Tuesday, June 9th. The company reported $0.19 EPS for the quarter. The business had revenue of $9.20 million for the quarter.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Kestra Advisory Services LLC increased its stake in shares of OFS Credit by 12.1% during the 1st quarter. Kestra Advisory Services LLC now owns 92,856 shares of the company's stock worth $268,000 after purchasing an additional 10,000 shares during the last quarter. Virtus Investment Advisers LLC raised its holdings in shares of OFS Credit by 0.9% in the 4th quarter. Virtus Investment Advisers LLC now owns 421,233 shares of the company's stock worth $2,039,000 after purchasing an additional 3,796 shares during the period. Commonwealth Equity Services LLC purchased a new position in OFS Credit in the fourth quarter valued at approximately $62,000. StoneX Group Inc. purchased a new position in OFS Credit in the fourth quarter valued at approximately $55,000. Finally, Kestra Private Wealth Services LLC purchased a new position in OFS Credit in the third quarter valued at approximately $56,000. 23.77% of the stock is owned by institutional investors.

About OFS Credit

OFS Credit Company, Inc NASDAQ: OCCI is a closed-end, externally managed business development company that primarily invests in senior secured loans to U.S. middle-market companies. As a registered investment company under the Investment Company Act of 1940, OFS Credit seeks to generate current income and capital appreciation by providing first-lien and second-lien debt financing to privately held and sponsor-backed businesses. The company targets borrowers with stable cash flows and defensible market positions across diverse industries, including business services, healthcare, manufacturing and technology.

The company's investment portfolio is weighted toward floating-rate loan instruments and subordinated debt, complemented by selective equity and equity-related securities.

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