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

Key Points

• Oxford Square Capital declared a monthly dividend of $0.035 per share payable April 30 to holders of record on April 16, implying an annualized yield of about 22.5%.
• The dividend appears unsustainable: the company has a reported payout ratio of 175% and analysts forecast $0.28 EPS next year versus a $0.42 annualized dividend, suggesting future payments would exceed earnings and rely on the balance sheet.
• Market sentiment is negative: OXSQ shares trade around $1.87 with a market cap of about $163.7M, a negative P/E, and a consensus Sell rating (Weiss Ratings: sell, d+).

Oxford Square Capital Corp. (NASDAQ:OXSQ - Get Free Report) declared a monthly dividend on Thursday, February 26th. Investors of record on Thursday, April 16th will be paid a dividend of 0.035 per share on Thursday, April 30th. This represents a c) dividend on an annualized basis and a dividend yield of 22.5%. The ex-dividend date is Thursday, April 16th.

Oxford Square Capital has decreased its dividend 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. Equities 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 opened at $1.87 on Tuesday. The firm has a fifty day moving average price of $1.80 and a 200 day moving average price of $1.81. The company has a market cap of $163.65 million, a P/E ratio of -7.19 and a beta of 0.45. Oxford Square Capital has a 12 month low of $1.56 and a 12 month high of $2.64.

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) last issued its earnings results on Tuesday, March 3rd. The company reported $0.07 EPS for the quarter, hitting analysts' consensus estimates of $0.07. The firm had revenue of ($10.71) million during the quarter, compared to the consensus estimate of $10.15 million. Oxford Square Capital had a negative net margin of 46.44% and a positive return on equity of 14.80%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a "sell (d+)" rating on shares of Oxford Square Capital in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Sell".

Oxford Square Capital Company Profile

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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