OFS Credit Company, Inc. (NASDAQ:OCCI) to Issue Monthly Dividend of $0.05

OFS Credit Company, Inc. (NASDAQ:OCCI) announced a monthly dividend on Monday, February 23rd. Stockholders of record on Monday, March 16th will be paid a dividend of 0.05 per share on Tuesday, March 31st. This represents a c) annualized dividend and a dividend yield of 18.9%. The ex-dividend date is Monday, March 16th.

OFS Credit has a payout ratio of 160.5% meaning 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 OFS Credit to earn $0.86 per share next year, which means the company may not be able to cover its $1.38 annual dividend with an expected future payout ratio of 160.5%.

OFS Credit Stock Performance

Shares of NASDAQ OCCI traded down $0.01 during trading hours on Monday, hitting $3.17. The stock had a trading volume of 1,032,285 shares, compared to its average volume of 462,274. The firm’s 50-day moving average price is $4.58 and its two-hundred day moving average price is $5.04. OFS Credit has a 52 week low of $3.05 and a 52 week high of $7.17. The company has a market capitalization of $49.93 million, a P/E ratio of -8.57 and a beta of 0.60.

OFS Credit (NASDAQ:OCCI) last posted its earnings results on Wednesday, December 10th. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.36 by ($0.04). The business had revenue of $11.97 million for the quarter, compared to analysts’ expectations of $12.77 million. As a group, analysts expect that OFS Credit will post 0.89 EPS for the current fiscal year.

About OFS Credit

OFS Credit Company, Inc (NASDAQ: OCCI) is a closed-end, externally managed business development company that primarily invests in senior secured loans to U.S. middle-market companies. As a registered investment company under the Investment Company Act of 1940, OFS Credit seeks to generate current income and capital appreciation by providing first-lien and second-lien debt financing to privately held and sponsor-backed businesses. The company targets borrowers with stable cash flows and defensible market positions across diverse industries, including business services, healthcare, manufacturing and technology.

The company’s investment portfolio is weighted toward floating-rate loan instruments and subordinated debt, complemented by selective equity and equity-related securities.