The following are two dividend stock ideas operating in the capital market industry that generate a part of their income from debt investments.
Oxford Square Capital Corp OXSQ offers a forward dividend yield of 13.21% or 42 cents per share annually through monthly payments, with an inconsistent track record of increasing its dividends.
Oxford Square Capital is a closed-end, non-diversified management investment company regulated as a business development company. The firm’s primary focus is to seek an attractive risk-adjusted total return by investing primarily in corporate debt securities and collateralized loan obligation (CLO) structured finance investments that principally own corporate debt securities.
As of Sept. 30, 2022, Oxford Square’s board of directors approved the fair value of the investment portfolio of approximately $340.2 million in good faith in accordance with the company’s valuation procedures.
Additionally, the net asset value (NAV) per share stood at $3.34 as of the second quarter of 2022, compared with a NAV per share on June 30, 2022, of $3.67.
Capital Southwest CSWC offers a forward dividend yield of 11.52% or $2.08 per share annually, conducting quarterly payments with a track record of increasing its dividends once in the past year.
Capital Southwest is a U.S.-based investment company that specializes in providing customized financing to middle-market companies across various industries. Its objectives are to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity-related investments.
For the second quarter that ended Sept. 30, 2022, Capital Southwest had a total investment portfolio of $1.1 billion. The company’s NAV as of the second quarter of 2022 was $16.53 per share, compared to $16.54 on June 30, 2022. The decrease in NAV per share from the prior quarter is primarily due to net realized losses on investments that were partially offset.
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