FSK - FS KKR Capital: Pay 82 Cents On The Dollar For A 13% Yield
2024-05-15 17:23:11 ET
Summary
- FS KKR Capital's first-quarter earnings showed strength in total/net investment income and healthy dividend coverage.
- The BDC focuses on senior secured loans and has seen improvements in asset quality in Q1'24.
- Shares of FS KKR Capital are undervalued, trading at a discount to net asset value, with potential for revaluation.
FS KKR Capital ( FSK ) continues to represent one of the deepest values in the BDC sector after it submitted its first-quarter earnings sheet, in my opinion. The BDC showed strength in total investment income and originations, and once again healthily covered its dividend with net investment income. One of the most attractive aspects of an investment in FS KKR Capital is that the company’s shares are selling for a sizable discount to net asset value. With strong dividend coverage, a double-digit discount to NAV and a potential catalyst for a revaluation (improvement in asset quality), I believe FS KKR Capital makes a very robust value proposition for dividend investors especially!...
FS KKR Capital: Pay 82 Cents On The Dollar For A 13% Yield