Runway Growth Finance Corp. (NASDAQ:RWAY) Plans $0.33 Quarterly Dividend

Key Points

• Runway Growth Finance declared a quarterly dividend of $0.33 per share (annualized $1.32) with a stated yield of 19.4%; shareholders of record on May 18 will receive the payment on June 2.
• The dividend is currently largely covered with a payout ratio of about 85.7%, but analysts project $1.42 EPS next year (implying a ~93% payout ratio) and the company recently missed quarterly EPS estimates ($0.32 reported vs. $0.36 expected), indicating potential sustainability risk if earnings decline.

Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) declared a quarterly dividend on Tuesday, May 5th. Shareholders of record on Monday, May 18th will be given a dividend of 0.33 per share on Tuesday, June 2nd. This represents a c) annualized dividend and a dividend yield of 19.4%. The ex-dividend date is Monday, May 18th.

Runway Growth Finance has a dividend payout ratio of 85.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities research analysts expect Runway Growth Finance to earn $1.42 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 93.0%.

Runway Growth Finance Stock Performance

RWAY stock opened at $6.81 on Thursday. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.05 and a current ratio of 1.05. The company's 50-day simple moving average is $7.03 and its 200 day simple moving average is $8.45. Runway Growth Finance has a 52 week low of $6.36 and a 52 week high of $11.40. The company has a market capitalization of $289.19 million, a PE ratio of 7.40 and a beta of 0.64.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last released its quarterly earnings results on Thursday, March 12th. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.04). Runway Growth Finance had a net margin of 24.79% and a return on equity of 11.52%. The business had revenue of $30.04 million during the quarter, compared to analyst estimates of $31.60 million. As a group, sell-side analysts anticipate that Runway Growth Finance will post 1.42 earnings per share for the current year.

About Runway Growth Finance

Runway Growth Finance, Inc is a publicly traded business development company that provides customized debt and equity financing solutions to high‐growth, venture‐backed companies. The firm specializes in structuring senior secured loans, unitranche facilities, second‐lien financings, convertible notes and equity co‐investments designed to extend the cash runway for late‐stage companies. Runway’s flexible capital offerings are aimed at supporting technology, life sciences and other innovation‐driven sectors as they pursue growth initiatives and prepare for liquidity events.

Originally launched in 2017 under the name Saratoga Investment Corp., the company rebranded as Runway Growth Finance in 2020 following the acquisition of an established middle‐market credit manager.

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