Oxford Lane Capital Corp. (NASDAQ:OXLC) to Issue Dividend Increase - $0.40 Per Share

Key Points

• Oxford Lane Capital declared a monthly dividend of $0.40 per share, payable Jan. 30 to stockholders of record on Jan. 16 (ex-dividend Jan. 16); this is a 400% increase from the prior $0.08 monthly payout and implies a ~32.5% annualized yield.
• The dividend may be unsustainable: Oxford Lane shows a 513.6% payout ratio and recently missed expectations (Q EPS $1.24 vs. $2.25 estimate; revenue $128.3M vs. $247.9M expected), suggesting payments are being funded from the balance sheet rather than earnings.

Oxford Lane Capital Corp. (NASDAQ:OXLC - Get Free Report) declared a monthly dividend on Friday, October 24th. Stockholders of record on Friday, January 16th will be given a dividend of 0.40 per share by the investment management company on Friday, January 30th. This represents a c) dividend on an annualized basis and a dividend yield of 32.5%. The ex-dividend date is Friday, January 16th. This is a 400.0% increase from Oxford Lane Capital's previous monthly dividend of $0.08.

Oxford Lane Capital has a payout ratio of 513.6% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Oxford Lane Capital Trading Up 0.1%

Shares of NASDAQ OXLC opened at $14.76 on Wednesday. The stock has a fifty day simple moving average of $14.44 and a two-hundred day simple moving average of $16.56. Oxford Lane Capital has a 1-year low of $12.88 and a 1-year high of $25.95. The firm has a market cap of $1.34 billion, a price-to-earnings ratio of 2.16 and a beta of 0.70.

Oxford Lane Capital (NASDAQ:OXLC - Get Free Report) last issued its earnings results on Wednesday, November 5th. The investment management company reported $1.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.25 by ($1.01). The business had revenue of $128.30 million during the quarter, compared to analysts' expectations of $247.87 million.

Oxford Lane Capital Company Profile

Oxford Lane Capital Corp is a closed-end, externally managed investment company that seeks to generate high current income and capital appreciation. The company invests primarily in debt and equity securities of private funds managed or advised by Oxford Finance LLC, targeting U.S. middle-market companies. Its portfolio spans senior secured loans, mezzanine debt and private equity interests, providing diversification across credit instruments and industry sectors.

Established in 2009 and based in Greenwich, Connecticut, Oxford Lane Capital commenced operations in 2012.

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