Oxford Square Capital Corp. Declares Monthly Dividend of $0.04 (NASDAQ:OXSQ)

Key Points

• Oxford Square Capital Corp. has announced a monthly dividend of $0.04 per share, which results in an annualized dividend yield of 17.8%.
• The company currently has a payout ratio of 175.0%, indicating it relies on its balance sheet to cover dividend payments, as earnings alone cannot support them.
• Analysts have revised their ratings for Oxford Square Capital from "hold" to "sell," amidst concerns about its financial sustainability and ability to meet future dividend obligations.

Oxford Square Capital Corp. (NASDAQ:OXSQ - Get Free Report) announced a monthly dividend on Monday, August 11th, Wall Street Journal reports. Shareholders of record on Wednesday, December 17th will be paid a dividend of 0.035 per share on Wednesday, December 31st. This represents a c) annualized dividend and a yield of 18.1%. The ex-dividend date is Wednesday, December 17th.

Oxford Square Capital has a payout ratio of 175.0% indicating that 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 Oxford Square Capital to earn $0.28 per share next year, which means the company may not be able to cover its $0.42 annual dividend with an expected future payout ratio of 150.0%.

Oxford Square Capital Stock Performance

Oxford Square Capital stock traded down $0.07 during mid-day trading on Friday, hitting $2.32. 645,070 shares of the company traded hands, compared to its average volume of 505,024. Oxford Square Capital has a one year low of $2.14 and a one year high of $3.03. The stock has a market cap of $180.66 million, a price-to-earnings ratio of -115.75 and a beta of 0.66. The stock has a fifty day moving average price of $2.30 and a 200-day moving average price of $2.48.

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.08 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.08. Oxford Square Capital had a negative net margin of 3.35% and a positive return on equity of 15.19%. The business had revenue of $9.52 million during the quarter, compared to analyst estimates of $10.00 million.

Oxford Square Capital Company Profile

Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans.