An In-Depth Look at Upcoming Dividends and Historical Performance
MidCap Financial Investment Corp (MFIC, Financial) recently announced a dividend of $0.38 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-06-11. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into MidCap Financial Investment Corp's dividend performance and assess its sustainability.
What Does MidCap Financial Investment Corp Do?
MidCap Financial Investment Corp is an externally managed, publicly traded, closed-end, diversified management investment company. Its investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. It predominantly invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, and in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies.
A Glimpse at MidCap Financial Investment Corp's Dividend History
MidCap Financial Investment Corp has maintained a consistent dividend payment record since 2004, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down MidCap Financial Investment Corp's Dividend Yield and Growth
As of today, MidCap Financial Investment Corp currently has a 12-month trailing dividend yield of 9.60% and a 12-month forward dividend yield of 9.60%, suggesting an expectation of same dividend payments over the next 12 months. Over the past three years, MidCap Financial Investment Corp's annual dividend growth rate was -5.50%, decreasing to -6.20% per year over five years, and -6.40% over the past decade. Based on MidCap Financial Investment Corp's dividend yield and five-year growth rate, the 5-year yield on cost of MidCap Financial Investment Corp stock as of today is approximately 6.97%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2024-03-31, MidCap Financial Investment Corp's dividend payout ratio is 0.87, suggesting that the company's dividend may not be sustainable. MidCap Financial Investment Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks MidCap Financial Investment Corp's profitability 4 out of 10 as of 2024-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
MidCap Financial Investment Corp's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
In conclusion, while MidCap Financial Investment Corp offers a high current yield, its declining growth rates and low profitability and growth ranks raise concerns about the sustainability of future dividends. Investors should consider these factors carefully when making investment decisions. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can explore options using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
