OFS Capital: Risk Of Dividend Cut Could Keep Hurting Price Performance [Seeking Alpha]
OFS Capital Corporation - Closed End Fund (OFS)
Last ofs capital corporation - closed end fund earnings: 3/13 08:00 am
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US:NASDAQ Investor Relations:
ir.ofscapitalcorp.com
Company Research
Source: Seeking Alpha
Summary I believe OFS Capital's 17% dividend yield is unsustainable due to declining portfolio value, deteriorating earnings, high accruals, and poor cash position, warranting a hold rating. The company's dividends exceed net investment income, and future earnings forecasts suggest significant declines, making a dividend cut likely. OFS Capital's high leverage ratio and cautious investment strategy limit growth potential, further impacting its ability to sustain dividends and share price. Investors should consider other BDCs like Barings BDC and Bain Capital, which offer solid fundamentals, sustainable dividends, and better growth prospects. Max Zolotukhin/iStock via Getty Images OFS Capital's ( NASDAQ: OFS ) 17% dividend yield is one of highest in the business development industry. However, it appears challenging for the BDC to sustain its dividends because of multiple factors, including declining portfolio value, deteriorating earnings growth power, higher non-accruals
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