"SLRC pays $0.41 per share per quarter, an annualized rate of $1.64 per share. But full-year 2025 net investment income (NII) came in at $1.59 per share, down from $1.77 in fiscal 2024."
"The NII coverage ratio for the full year sits just below 100%, meaning the dividend lacks coverage by a small but real margin."
"Management cited 'declining index rates' and a 'smaller average income-producing portfolio' as factors impacting income."
"Most loans carry floating interest rates tied to SOFR, so SLRC's income moves with prevailing short-term rates."
SLR Investment Corp. offers a dividend yield of approximately 10.8%. As a Business Development Company, it must distribute at least 90% of taxable income. The company generates income by lending to U.S. middle-market companies across various sectors. However, its net investment income for 2025 was $1.59 per share, slightly below the $1.64 annual dividend payout. This results in a coverage ratio just below 100%, indicating the dividend is not fully supported by earnings, primarily due to recent interest rate cuts affecting income.
#slr-investment-corp #dividend-yield #net-investment-income #interest-rates #business-development-company
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