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

OFS Credit Company, Inc. (NASDAQ:OCCI) announced a monthly dividend on Monday, February 23rd. Stockholders of record on Wednesday, April 15th will be given a dividend of 0.05 per share on Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 18.9%. The ex-dividend date of this dividend is Wednesday, April 15th.

OFS Credit has a dividend payout ratio of 160.5% indicating that 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 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 Price Performance

Shares of OCCI traded down $0.01 during mid-day trading on Monday, reaching $3.17. 1,032,285 shares of the company’s stock were exchanged, compared to its average volume of 462,274. The business’s fifty day simple moving average is $4.58 and its 200-day simple moving average is $5.04. The stock has a market capitalization of $49.93 million, a PE ratio of -8.57 and a beta of 0.60. OFS Credit has a 52-week low of $3.05 and a 52-week high of $7.17.

OFS Credit (NASDAQ:OCCI) last released its quarterly earnings results on Wednesday, December 10th. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.04). The company had revenue of $11.97 million for the quarter, compared to analysts’ expectations of $12.77 million. Equities research analysts predict that OFS Credit will post 0.89 earnings per share for the current year.

Wall Street Analyst Weigh In

Separately, Wall Street Zen cut shares of OFS Credit from a “buy” rating to a “hold” rating in a report on Saturday, January 31st.

OFS Credit Company Profile

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.