OXSQ: As expected, OXSQ's fourth quarter dividend was unchanged at $0.20. That's the 8th quarter in a row at that level, with no change in sight. Back In May 2018 we changed our outlook for OXSQ from DECREASE to UNCHANGED because of the under-leveraged nature of the BDC. Since year end assets have grown and so have recurring earnings, bringing GAAP Net Investment Income Per Share to $0.18 from $0.15, and closer to "covering" the dividend. TICC may actually match earnings and payout in the next quarter thanks to a mid October borrowing and asset growth playing out over a full period. Given that CLO risk metrics and bad debts - based on what the earnings release says - remain muted, the distribution should remain unchanged.
NEWT: As expected - and previously predicted by management - NEWT announced a $0.50 fourth quarter 2018 payout and an annual result of $1.80, up from $1.64. We'll be learning on November 8, when NEWT discusses its financial resulys what we should expect for 2019. We expect another increase of 5%-10%.
SCM: As expected - and for the 24th quarter in a row - SCM maintained a distribution of $0.34, but paid monthly. We had a rating of UNCHANGEd which remains...unchanged going forward.
MVC: For the 5th period in a row MVC announces a $0.15 distribution. The BDC has paid a distribution 54 quarters in a row, a BDC record.
BBDC: In its second quarter under Barings management, BBDC raised its distribution to $0.10 per quarter for the IVQ 2018, up from $0.03 last period. BBDC remains firmly rated INCREASE.
MAIN: The popular BDC has been paying the same semi-annual "Special Dividend", essentially funded by net Realized Gains, for years. The amount remains unchanged. However, we predict that either the Special Dividend - which has become part of the MAIN landscape and which we count when evaluating the running rate - or its monthly distribution (or both) will be increased in the next 12 months.
NEWT: The BDC affirmed its 2018 $1.80 dividend forecast; gave some background financial info and implied a higher dividend would be projected for 2019, to be discussed at the November 8 Conference Call.
GLAD: As expected, GLAD maintained its $0.07 monthly distribution, now unchanged for 39 quarters, the longest streak of any BDC.
GAIN: The BDC - as we expected - modestly increases its monthly distribution (1.5%) and maintains regular Special Dividends. We had a rating of INCREASE based on hints of an increase by management on Conference Calls. Even in advance of the next Conference Call, we continue to expect GAIN to continue to increase its regular distribution in the next twelve months. That's actually based on reported earnings or through September 2019.
SUNS: As expected, the monthly dividend was unchanged at $0.1175 for October 2018. To date SUNS has paid a unchanged distribution for 25 full quarters. This begins the 26th.
PFLT: As expected PFLT announced another unchanged monthly distribution of $0.095, starting out the IVQ. Notable mostly for nonresident shareholders for whom 86% of payment is not subject to withholding.
CPTA: The $0.833 monthly distribution is announced for the IVQ 2018, now unchanged for 5 quarters in a row.
OHAI: No surprise as OHAI's distribution remains unchanged at 2 cents a share.
PNNT: The quarterly dividend remains unchanged at $0.27 for a seventh quarter in a row. The BDC is recovering from a failed foray into energy lending which caused its regular distribution - which held throughout the Great Recession - to be cut for the first time from $0.28 to $0.18 currently.
PFLT: The monthly dividend is unchanged at $0.095. PFLT has now paid an unchanged payout for 15 quarters in a row. Also note foreign shareholders that 82% of the distribution is exempt from U.S. withholding.
WHF: the BDC announced an unchanged distribution of $0.355 for the quarter ended September 2018. This represents the 24th quarter of an unchanged payout amount.
SUNS: The BDC announced an unchanged monthly payout. This represents 25 quarters in a row of an unchanged $0.1175 monthly distribution.
MRCC: As expected MRCC is to pay out an unchanged distribution of $0.35 for the quarter ended September 2018. That's the 19th payment in a row by MRCC.
CSWC: For the IIIQ 2018, CSWC is paying both a $0.34 "regular" dividend and a $0.10 "supplementary" dividend, for a total of $0.44. The ex-dividend date is September 14. Back in June CSWC paid a distribution of $0.89, of which $0.60 was supplementary and $0.29 was regular. The BDC Reporter decided at the time to count both the then $0.29 dividend and the $0.10 supplementary that CSWC proposed to pay in future periods as the base level of payout or $1.56 annualized. With this latest announcement the baseline has increased to $1.76 ($0.44 x4). This is in line with our INCREASE rating that we've had on CSWC. However, despite the big jump in the regular portion of the distribution, we still expect - by June 2019 - a further increase in the baseline distribution. As a result we are maintaining our INCREASE rating.
BBDC: The former Triangle Capital - now Barings BDC with the ticker BBDC - has announced its first quarterly distribution since Barings took over. The amount was a very modest - but expected - $0.03. The BDC will be adding many more assets in the quarters ahead, which means the dividend will be on a growth path. As result, we are initiating BBDC with a INCREASE rating through June 2019. That brings the number of BDCs in the INCREASE category to 8 out of 46.
PSEC: The BDC - while announcing full year results - reported two more monthly distributions of $0.06 each through October 2018. We have an AT RISK outlook on PSEC, but reported EPS was materially above the $0.18 a quarter dividend level in the last quarter. Nonetheless, we are maintaining our AT RISK outlook for the next 12 months till we review the 10-K.
SAR: For the quarter ended August 31, 2018 SAR increased its dividend to $0.52, the sixteenth raise in a row. The BDC Reporter already had a Dividend Outlook of INCREASE and believes there will be one or more further increases in the period through May 2019. As a result we are maintaining our INCREASE rating. SAR is one of 7 BDCs currently with an INCREASE rating.
NEWT: The distribution was pegged at $0.48, up from $0.42 the quarter before. Management reiterated its annual projection for 2018 of $1.80, suggesting the next payout will be $0.50. The BDc Reporter adds: We MAINTAIN our INCREASE rating for the twelve months through June 2019.
MAIN: The BDC maintained its distribution from the IIIQ 2018 at $0.19 per share.
GSBD: The dividend was unchanged for the 14th quarter in a row at $0.45. We had a correct UNCHANGED rating.
ARCC: As part of IIQ 2018 earnings release, ARCC announces IIIQ 2018 distribution of $0.39 versus $0.38 in 24 prior quarters. The increase - albeit modest - was not anticipated in our rating which was UNCHANGED. We are reviewing our rating to June 2019 in light of this change, and with the benefit of the latest results.
TSLX: The dividend is unchanged from the prior period at $0.39. Also, TSLX is paying a supplemental dividend of $0.08. We had a correct UNCHANGED rating.
SUNS: as expected, the monthly distribution is the same as in prior periods.
OXSQ: As part of IIQ 2018 earnings release, OXSQ announces IIIQ 2018 distribution, unchanged at $0.20. We had a correct UNCHANGED rating.
MAIN: As projected by the BDC Reporter - and most everybody else - MAIN increased its monthly payout by 2.9% with the calendar IVQ of 2018. MAIN is one of 7 BDCs that we had an INCREASE rating for through March 2019.
NEWT: The BDC raised its forecast for its 2018 distribution for the third time and after two payments have already been made. NEWT is one of 7 BDCs on our Dividend Raisers List.
MVC: The BDC maintained for a fourth time - for the quarter ended July 2018 - its dividend at $0.15. We had a correct UNCHANGED rating.
SCM: The BDC maintained the same pay out for the 23rd quarter in row at $0.1133/share monthly dividend. We had a correct UNCHANGED rating.
SAR: following the SAR May 2018 results- which we've reviewed- and noting the $0.63 Net Investment Income Per Share achieved in the period versus a dividend of $0.51, we expect another dividend increase before May 2019.
GLAD: For the 38th quarter in a row GLAD has announced a monthly distribution of $0.07. The BDC Reporter adds; We have an UNCHANGED rating on the distribution through March 2019, which is Affirmed. However, we'll be curious to see if GLAD - on a long term rebound under the current team and intending to leverage up its balance sheet in 2019 - may be considering an increase in the pay-out.
GAIN: The monthly distribution of GAIN remains the same for a second quarter in a row (after a recent modest increase) at $0.067 (from $0.065). The announcements covers the period through September 2018. The BDC Reporter has an INCREASE rating on GAIN through March 2019, which we affirm, notwithstanding the absence of any increase this period. We'll have a clearer picture after the June 2018 results are published in a few days but they are generally expected to be positive and support - along with the BDC's intention to leverage up from next year - the notion of another (still modest) increase in the distribution coming down the pike by spring of next year. Maybe 7 cents a share ?
CSWC: As expected, CSWC raised its distribution in the IIQ 2018. Looking forward to March 2019, the Dividend Outlook remains at INCREASE.
MAIN: As expected, MAIN announced yet another "Special Dividend" at mid-year of $0.275. That's in addition to the regular monthly distribution of $0.19 ($0.57 quarterly) that's been in place since September 2017. The BDC Reporter's Dividend Outlook, though, for MAIN remains a rating of INCREASE in 2018. That could come in May when the BDC promises to announce third quarter distributions. Same time last year shareholders received a half cent a month increase. A similar modest - but still noteworthy increase - might be in the cards. Currently, though, MAIN's total distribution level is $2.83, which represents a 7.55% yield on the closing price at 4/18/18. More impressive sounding - and one of the reasons investors have bid up the shares - the dividend yield on book value is 12.0%.
GAIN: The BDC increased its monthly distribution from 6.5 cents to 6.7 cents and announced a Special Distribution of 6 cents as well. The BDC Reporter had a Dividend Outlook of INCREASE, so the raise was expected. We are maintaining an INCREASE rating for the next 12 months,
SUNS: Payout unchanged at $0.1175. SUNS has paid an unchanged monthly distribution for 23 full quarters.
KCAP: The BDC announced an unchanged distribution for a second period in a row of $0.10 a share.
NEW YORK, March 14, 2018 /PRNewswire/ -- Alcentra Capital Corporation (NASDAQ: ABDC) ("Alcentra" or the "Company"), a...
HRZN: Notwithstanding HRZN announcing an unchanged $0.10 per month distribution for the April-June 2018 months, the BDC Reporter maintains a Dividend Outlook of AT RISK for 2018. After reviewing the latest results, Net Investment Income Per Share is at just $0.21 in the IVQ 2017. Leverage remains close to the maximum target at 0.71x. Troubled loans have been sold off so credit risk is down but the BDC has little room to boost earnings, even if yields are holding up. Nor is any great Realized Gain of equity investments likely that could be turned into yield bearing investments. The excess income from prior periods is rolling off fast as the BDC has been paying out more than has been coming in. On the other hand, management is making the case that a plethora of loans booked in the IVQ 2017 will boost income, and are adding-back 3 cents a share incurred in the IVQ 2017 for refinancing the Unsecured Notes. Then there's higher rates...As a result the sustainability of the distribution remains much in question. We are affirming our AT RISK view.
SCM: Following SCM's IVQ and full year 2017 results, the BDC Reporter affirms our Dividend Outlook of UNCHANGED. Although the latest quarter's recurring earnings were several cents below the distribution, the deficit was made up with Realized Gains. That's a payout strategy other BDcs use including recently ARCC and MAIN. Moreover, early in 2018 the BDC appears to be set to boost recurring Net Investment Income thanks to a material net increase in portfolio assets and lower cost on its Unsecured Notes thanks to the refinancing in 2017. The BDC has announced an unchanged distribution for the first quarter of 2018 of $0.34. That's 21 quarters in a row. SCM is modestly helped by having a modest amount of undistributed ordinary income and Realized Gains yet to pay out:about $1mn.
PFLT: The BDC announced a March monthly distribution of $0.095. That's unchanged from the last month and for the last 13 quarters. Dividend Outlook: Remains UNCHANGED for 2018.
PNNT: As expected, the BDC announced an unchanged distribution for the first quarter of 2018 of $0.18, now for 5 quarters in a row. Dividend Outlook: We have a rating of AT RISK, but may re-rate to UNCHANGED as energy investments benefit from higher oil and credit stabilizes.
CSWC: One day after the Dividend Outlook feature added an INCREASE rating, one of the 6 BDCs expected to boost its payout in 2018 did just that. Capital Southwest continued its campaign of quarterly increases, moving from $0.26 in the IVQ 2017, and $0.24 in the IIIQ 2017 to $0.28 in the IQ 2018. For the BDC Reporter that's the 4th correct call we've made where dividend moves are concerned, after rating either DECREASE or AT RISK OCSL, OCSI and HCAP, all of which have cut their payouts this year. In the case of CSWC we have maintained our rating going forward at INCREASE. Every time CSWC will be challenged to maintain its upward streak, but the BDC remains under-leveraged (debt to equity of 0.3 to 1.0), with plenty of liquidity after a Unsecured Note raise and booking deals regularly, according to press releases. That should boost recurring earnings and allow at least one more raise in 2018, which is the period covered by our projection.
With Saratoga Investment's dividend increase, and a recent hike from Solar Capital, we've decided to add another category to our 1 year out dividend rating system. Instead of having three rating options, we are adding a fourth: INCREASE. We immediately upgraded 6 BDCs from UNCHANGED to INCREASE. That includes Saratoga and Solar Capital, both of whom we expect further regular dividend increases from, along with NEWT,MAIN, GAIN and CSWC. Check out the Dividend Outlook Table for the changes made.
SAR: For the quarter ended February 2018, SAR announced a 1 cent increase in its distribution to $0.50. We had a rating of UNCHANGED. Subsequent to our expanding our rating system (see above) to include an INCREASE projection, we updated SAR through November 2018 to the highest rating. Although Net Investment Per Share and the distribution are getting closer, we expect at least one more raised distribution.
TSLX: The BDC Reporter had an UNCHANGED rating for the $0.39 quarterly distribution TSLX in advance of the most recent earnings. Now, we've reviewed the IVQ and full year 2017 earnings press release and the accompanying 10-K of the BDC. We also looked at the 45 company portfolio list and identified only 2 Watch List names (Mississippi Resources and IRGSE Holding Corp), both of which are of long standing. These two credits account for $60mn, or 3.6% of total assets. That number is essentially unchanged from the prior period and down by $116mn from the end of 2016, thanks to Realized Losses and write-ups. There are no non-accruals. Yields continue at historic or higher levels and we project annual earnings for 2018 of $1.90, well covering the $1.56 regular distribution liability that will now have been paid 14 quarters in a row and which has never been cut. Admittedly, Mississippi Resources seems to have deteriorated in value. The company was restructured in 2017 into a debt and equity portion. The latter $17mn has been almost completely written off. The $25.2mn in Senior debt, though, remains valued very close to par. A problem for another quarter perhaps, but OK for the moment. With plenty of liquidity, and debt to equity at a recent low and with TSLX being able to maintain its yield by doing idiosyncratic senior deals - often in an asset based format- and with recurring earnings running well ahead of the distribution, there appears to be no immediate threat to the sustainability of the dividend. DIVIDEND OUTLOOK AFFIRMED AT "UNCHANGED" FOR 2018.
OCSI: Oaktree Strategic Income cuts its distribution - the second BDC this year just 6 weeks in on February 9, 2018. This has caused the BDC Reporter to re-rate the BDC's Dividend Outlook for the rest of 2018 at the new - lower - level. Are we done with the payout reductions at OCSI this year ? THE BDC REPORTER RE-RATES OCSI'S DIVIDEND OUTLOOK AS "AT RISK". See the article for the full discussion.
OCSI: The BDC reduced its quarterly dividend from the first quarter of 2018 from $0.19 to $0.14, a (26%) drop. The BDC Reporter had a DECREASE rating in 2018 for OCSI.
MCC: The BDC Reporter's rating of DECREASE remains unchanged after the IVQ 2017 results are announced. See the article.