OFS Credit Company, Inc. (NASDAQ:OCCI) to Issue Monthly Dividend of $0.12

OFS Credit Company, Inc. (NASDAQ:OCCI) announced a monthly dividend on Friday, January 16th. Shareholders of record on Friday, February 13th will be paid a dividend of 0.115 per share on Friday, February 27th. This represents a c) dividend on an annualized basis and a yield of 33.3%. The ex-dividend date is Friday, February 13th.

OFS Credit has a payout ratio of 173.3% 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 research analysts expect OFS Credit to earn $0.86 per share next year, which means the company may not be able to cover its $1.49 annual dividend with an expected future payout ratio of 173.3%.

OFS Credit Price Performance

Shares of OFS Credit stock traded up $0.06 on Wednesday, reaching $4.15. The company had a trading volume of 232,953 shares, compared to its average volume of 347,901. The firm has a market cap of $65.36 million, a price-to-earnings ratio of -11.21 and a beta of 0.59. The firm’s 50-day moving average price is $4.78 and its two-hundred day moving average price is $5.17. OFS Credit has a 1 year low of $4.03 and a 1 year high of $7.32.

OFS Credit (NASDAQ:OCCI) last issued its quarterly 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 company had revenue of $11.97 million during the quarter, compared to the consensus estimate of $12.77 million. As a group, analysts anticipate that OFS Credit will post 0.89 EPS for the current year.

Analysts Set New Price Targets

Separately, Wall Street Zen downgraded OFS Credit from a “buy” rating to a “hold” rating in a research 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.