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

Key Points

• Oxford Square Capital declared a monthly dividend of $0.035 per share, payable December 31 to shareholders of record on December 17. The dividend implies a 27.1% yield, with the ex-dividend date also set for December 17.
• The dividend appears financially strained: Oxford Square’s payout ratio is 175%, meaning earnings alone currently do not cover the payment. Dividends have also declined by an average of 0.1% annually over the past three years.
• Shares rose 7.6% to $1.55, while the company reported quarterly EPS of $0.05, beating estimates by $0.01. Despite the earnings beat, the stock carries a consensus “Sell” rating from analysts.

Oxford Square Capital Corp. (NASDAQ:OXSQ - Get Free Report) announced a monthly dividend on Friday, July 31st. Stockholders of record on Thursday, December 17th will be paid a dividend of 0.035 per share on Thursday, December 31st. This represents a c) dividend on an annualized basis and a dividend yield of 27.1%. The ex-dividend date is Thursday, December 17th.

Oxford Square Capital has decreased its dividend payment by an average of 0.1%annually over the last three years. Oxford Square Capital has a dividend payout ratio of 175.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Oxford Square Capital Stock Up 7.6%

Shares of OXSQ traded up $0.11 during mid-day trading on Friday, hitting $1.55. 3,458,532 shares of the company's stock traded hands, compared to its average volume of 1,698,857. The firm has a market capitalization of $144.97 million, a P/E ratio of -3.60 and a beta of 0.38. The business's 50-day moving average price is $1.38 and its 200-day moving average price is $1.66. Oxford Square Capital has a 1 year low of $1.05 and a 1 year high of $2.42.

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The company reported $0.05 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.01. Oxford Square Capital had a positive return on equity of 14.11% and a negative net margin of 92.37%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on OXSQ shares. Wall Street Zen raised shares of Oxford Square Capital from a "strong sell" rating to a "sell" rating in a research report on Sunday, May 17th. Weiss Ratings lowered shares of Oxford Square Capital from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, May 18th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Oxford Square Capital presently has a consensus rating of "Sell".

About Oxford Square Capital

Oxford Square Capital Corp. NASDAQ: OXSQ is a publicly traded business development company that provides flexible financing solutions to U.S. middle-market companies. Chartered as a closed-end management investment company, Oxford Square Capital seeks to generate current income and capital appreciation by investing primarily in secured loans, mezzanine debt and equity co-investments. The firm targets businesses with established cash flows, offering tailored capital structures designed to support growth, recapitalizations and acquisitions.

The company's investment strategy focuses on senior secured first-lien and second-lien loans, subordinated debt and preferred and common equity stakes.

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