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

Key Points

• OFS Credit declared a monthly dividend of $0.05 per share, payable May 29 to shareholders of record on May 15, which annualizes to about a 20.2% yield at the current share price.
• The company has a reported payout ratio of 158.1% and "cannot currently cover its dividend with earnings," with analysts forecasting $0.86 in EPS next year versus a stated $1.36 annual dividend, indicating payouts are being funded from the balance sheet.
• Shares recently traded around $2.97 with a market capitalization of roughly $86.4 million and a one‑year range of $2.62–$6.82, highlighting elevated risk and volatility for income investors.

OFS Credit Company, Inc. (NASDAQ:OCCI - Get Free Report) declared a monthly dividend on Thursday, April 16th. Stockholders of record on Friday, May 15th will be paid a dividend of 0.05 per share on Friday, May 29th. This represents a c) dividend on an annualized basis and a dividend yield of 20.2%. The ex-dividend date is Friday, May 15th.

OFS Credit has a payout ratio of 158.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect OFS Credit to earn $0.86 per share next year, which means the company may not be able to cover its $1.36 annual dividend with an expected future payout ratio of 158.1%.

OFS Credit Trading Down 0.3%

Shares of OCCI stock opened at $2.97 on Friday. OFS Credit has a 1 year low of $2.62 and a 1 year high of $6.82. The firm's 50 day moving average is $3.13 and its 200-day moving average is $4.28. The firm has a market capitalization of $86.40 million, a price-to-earnings ratio of -2.27 and a beta of 0.61.

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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