OFS Credit Company, Inc. (NASDAQ:OCCI) to Issue $0.05 Monthly Dividend

Key Points

• OFS Credit announced a $0.05 monthly dividend with record and ex-dividend date on June 15 and a payment on June 30, representing a reported annualized yield of 20.2%.
• The dividend appears potentially unsustainable: OFS Credit has a 158.1% payout ratio and analysts forecast only $0.86 in EPS next year, indicating earnings likely won't cover the dividend.
• OFS Credit is a closed-end business development company focused on senior secured loans to U.S. middle-market firms, with a market capitalization around $86.4 million and recent share price near $2.97.

OFS Credit Company, Inc. (NASDAQ:OCCI - Get Free Report) announced a monthly dividend on Thursday, April 16th. Stockholders of record on Monday, June 15th will be given a dividend of 0.05 per share on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 20.2%. The ex-dividend date of this dividend is Monday, June 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. 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 Stock Down 0.3%

OCCI opened at $2.97 on Friday. The firm has a market capitalization of $86.40 million, a P/E ratio of -2.27 and a beta of 0.61. The firm's 50 day moving average is $3.13 and its 200-day moving average is $4.28. OFS Credit has a 52-week low of $2.62 and a 52-week high of $6.82.

OFS Credit Company Profile

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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