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

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 17.6%. The ex-dividend date of this dividend 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

Shares of OXSQ stock traded up $0.01 during mid-day trading on Thursday, reaching $2.38. 751,259 shares of the company were exchanged, compared to its average volume of 504,512. Oxford Square Capital has a fifty-two week low of $2.14 and a fifty-two week high of $3.07. The company has a market capitalization of $180.95 million, a P/E ratio of -119.00 and a beta of 0.66. The business's 50 day simple moving average is $2.29 and its 200 day simple moving average is $2.48.

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.08 earnings per share for the quarter, hitting analysts' consensus estimates of $0.08. Oxford Square Capital had a negative net margin of 3.35% and a positive return on equity of 15.21%. The business had revenue of $9.52 million during the quarter, compared to the consensus estimate of $10.00 million.

Hedge Funds Weigh In On Oxford Square Capital

Large investors have recently added to or reduced their stakes in the company. Two Sigma Advisers LP raised its stake in shares of Oxford Square Capital by 10.8% during the fourth quarter. Two Sigma Advisers LP now owns 1,414,613 shares of the company's stock valued at $3,452,000 after purchasing an additional 137,400 shares in the last quarter. Millennium Management LLC raised its stake in shares of Oxford Square Capital by 23.9% during the fourth quarter. Millennium Management LLC now owns 142,335 shares of the company's stock valued at $347,000 after purchasing an additional 27,451 shares in the last quarter. Jane Street Group LLC bought a new stake in shares of Oxford Square Capital during the fourth quarter valued at about $199,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of Oxford Square Capital during the fourth quarter valued at about $49,000. Finally, Cambridge Investment Research Advisors Inc. raised its stake in shares of Oxford Square Capital by 42.8% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 18,782 shares of the company's stock valued at $49,000 after purchasing an additional 5,626 shares in the last quarter. 6.44% of the stock is currently owned by institutional investors.

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.