2024-06-14 12:01:36 ET
Summary
- OFS Capital Corp offers a high dividend yield of 13.7% with a diverse portfolio focused on senior secured loans in various industries.
- The company's financials show continued growth, with net investment income per share covering the dividend comfortably at 123.5%.
- Despite the high yield, OFS has underperformed its peers in total return and lacks dividend growth. OFS has failed to provide any meaningful growth or supplemental dividends the way peers have.
- With a higher non-accrual rate, this may indicate potential weaknesses in underwriting systems.
Overview
Business Development Companies have increasingly become my favorite place to get a predictable and easy to understand high dividend yield. As a dividend investor, I am always looking for a way to increase my passive income, and BDCs are naturally set up to benefit from this higher interest rate environment. I've covered plenty of BDCs here in the past, but today I wanted to take a look at OFS Capital Corp ( OFS ) to assess its strategy, portfolio, distribution history, and performance....
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For further details see:
OFS Capital: Higher Non-Accruals Than Peers Contributes To NAV Deterioration