An updated edition of the Nov. 17, 2025, article.As the Federal Reserve pivots toward monetary easing and inflation continues to cool toward its target, investors face the dual challenge of guarding against market volatility while still capturing returns. Against this backdrop, shareholder-yield investing—focused on companies that return capital through dividends, share repurchases, and debt reduction—has emerged as a compelling strategy to protect capital while enhancing total returns.Among the companies t ...

Distributions - CĪON Investment Corporation declared base distributions of $0.10 per share for January, February, and March 2026, totaling $0.30 for Q1 2026[5] - The record dates for the distributions are January 16, February 13, and March 13, 2026, with payment dates on January 30, February 27, and March 27, 2026[5] - The board of directors will ratify the distribution amounts on a quarterly basis, ensuring ongoing shareholder returns[4]

Core Insights - In 2025, investors are focusing on companies that generate steady cash and return it to shareholders, with shareholder yield becoming a key metric for assessing commitment to investor rewards [2][3][4] Market Environment - Inflation is cooling and interest rates are easing, allowing companies that managed debt effectively during tough years to benefit from lower financing costs [3] - Geopolitical uncertainty and high stock valuations are making investors cautious about pursuing growth aggressively, leading to a preference for reliable cash returns [4] Shareholder Yield Strategy - Research indicates that shareholder-yield strategies outperform traditional high-dividend approaches, as high dividends alone do not ensure disciplined capital management [5] - Combining dividends with share buybacks and debt reduction provides a clearer picture of management's commitment to long-term value [6] Investment Opportunities - High-quality shareholder-yield companies offer a blend of consistent returns and volatility cushioning, reflecting management teams focused on long-term performance [7] - Notable companies with strong shareholder yields include: - **CION Investment Corporation (CION)**: Offers a dividend yield of approximately 14.17%, with seven dividend increases in five years and a payout ratio of 81% [8][9][10] - **Invesco (IVZ)**: Provides a dividend yield of 3.57%, with six increases in five years and a payout ratio of 44% [11][12] - **TPG RE Finance Trust (TRTX)**: Offers a dividend yield of around 10.73%, with three increases in five years and a reduction in long-term debt from $3.71 billion in 2021 to $2.83 billion in Q3 2025 [13][14][15] - **W.P. Carey (WPC)**: Provides a dividend yield of 5.38%, with 20 increases in five years despite a negative annualized growth rate of 4.78% [16][17][18]

Core Viewpoint - CION Investment Corporation (CION) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding CION's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.39 per share, reflecting an increase of +11.4% compared to the previous year [5]. - Over the last 30 days, the Zacks Consensus Estimate for CION has risen by 11.43%, with one estimate moving higher and no negative revisions [5]. - For the full year, the earnings estimate stands at $1.81 per share, indicating a change of +1.1% from the year-ago figure [6]. - There has been a positive trend in estimate revisions for the current year, with the consensus estimate increasing by 30.22% due to one upward revision and no negative changes [7]. Zacks Rank - CION has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors [8]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3]. Stock Performance - CION's stock has increased by 10% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [9].

Group 1 - The sentiment towards Business Development Companies (BDCs) has shifted to a more bullish outlook compared to earlier in the year when the sector experienced a significant decline [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on shaping financial strategies for top-tier corporates and executing large-scale financings [2] - Efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [2] - Development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing has been a key policy-level initiative [2]

分组1 - CION Investment Corporation reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.4 per share a year ago, resulting in an earnings surprise of +111.43% [1] - The company achieved revenues of $78.71 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 49.73%, compared to $59.63 million in the same quarter last year [2] - CION Investment Corporation has outperformed consensus EPS estimates two times over the last four quarters [2] 分组2 - The stock has underperformed the market, losing about 20% since the beginning of the year, while the S&P 500 gained 15.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $52.15 million, and for the current fiscal year, it is $1.39 on revenues of $213.04 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - For the third quarter ended September 30, 2025, net investment income was $0.74 per share, and earnings per share were $0.69[5] - Total investment income for the quarter was $78.7 million, up from $52.2 million in the previous quarter, driven by higher interest income and transaction fees[7] - Net investment income after taxes for the three months ended September 30, 2025, was $38.57 million, compared to $21.62 million for the same period in 2024, representing an increase of 78.5%[24] - Total investment income for the three months ended September 30, 2025, was $78.71 million, a 31.9% increase from $59.63 million in the prior year[24] - Net realized losses on non-controlled, non-affiliated investments for the three months ended September 30, 2025, were $9.61 million, compared to gains of $3.94 million in the same period last year[24] Asset and Investment Overview - The company had total investments at fair value of $1.74 billion across 91 portfolio companies, with 80% in senior secured first lien investments[5] - Total investments at fair value amounted to $1.84 billion, up from $1.82 billion in the previous quarter[22] - Investments on non-accrual status increased to 1.75% of the total investment portfolio at fair value, up from 1.37% as of June 30, 2025[11] - The net asset value per share increased to $14.86, reflecting a 2.5% increase from $14.50 as of June 30, 2025, primarily due to out-earning distributions by $0.38 per share[5] - The net asset value per share of common stock increased to $14.86 at the end of the period, up from $14.50[22] Debt and Liabilities - The net debt-to-equity ratio improved to 1.28x from 1.39x as of June 30, 2025, with total debt outstanding at $1.09 billion[5] - Total liabilities decreased to $1.11 billion from $1.12 billion in the previous quarter[22] Shareholder Actions - The company repurchased 330,324 shares at an average price of $9.86 per share, totaling $3.3 million during the quarter[5] - Management fees for the three months ended September 30, 2025, were $6.53 million, slightly down from $6.85 million in the prior year[24] - The weighted average shares of common stock outstanding were 52,065,707 for the three months ended September 30, 2025[24] Operational Metrics - Operating expenses for the quarter were $40.1 million, an increase from $35.3 million in the previous quarter, primarily due to higher advisory fees[8] - The weighted average interest coverage ratio was 1.94x, slightly improved from 1.93x in the previous quarter[11] - Total assets as of September 30, 2025, were approximately $1.9 billion, reflecting a slight increase from $1.88 billion as of June 30, 2025[25] Future Outlook - The company will shift to monthly base distributions starting January 2026, with a fourth quarter 2025 distribution declared at $0.36 per share[2] - CION Investment Corporation focuses primarily on senior secured loans to U.S. middle-market companies, aiming to generate current income and capital appreciation[25]

Distribution and Income - The company declared a quarterly base distribution of $0.36 per share for Q4 2025, payable on December 15, 2025[371]. - The company changed the timing of base distributions to monthly starting January 2026, with monthly distributions declared quarterly in advance[372]. - The company intends to distribute at least 90% of its net ordinary income and realized net short-term capital gains to maintain RIC tax treatment[412]. - Total distributions for the year ended December 31, 2024, amounted to $1.52 per share, totaling $81,308[414]. - For the nine months ended September 30, 2025, total distributions were $1.08 per share, totaling $56,809[414]. Investment Portfolio - As of September 30, 2025, the company's total investments amounted to $1,910,155,000, with a fair value of $1,840,584,000[373]. - The company has 91 portfolio companies as of September 30, 2025[373]. - The company’s investment objective is to generate current income and capital appreciation, focusing on senior secured debt of U.S. middle-market companies[360]. - The company’s portfolio primarily consists of senior secured first lien debt, which accounted for 80.0% of the investment portfolio[373]. - The average annual EBITDA of portfolio companies was $58.1 million, while the median annual EBITDA was $34.6 million[373]. - The gross annual portfolio yield based on the purchase price was 9.31%[374]. - As of September 30, 2025, 85.7% of the investment portfolio was rated 2, indicating a stable risk level[382]. - The investment portfolio's fair value as of September 30, 2025, was $1,738,184, with a total investment of $1,840,584 including short-term investments[379]. - The company had 105 portfolio companies as of December 31, 2024, which decreased to 90 by October 29, 2025[383]. - The average annual EBITDA of portfolio companies was $53.6 million, while the median annual EBITDA was $34.2 million[376]. Financial Performance - Investment income for the three months ended September 30, 2025, was $78,711, an increase from $59,627 in the same period of 2024, reflecting higher income from restructured investments[386]. - The net investment income after taxes for the three months ended September 30, 2025, was $38,567, compared to $21,618 in 2024[385]. - The net increase in net assets resulting from operations for the nine months ended September 30, 2025, was $20,489, down from $28,444 in 2024, a decline of 28.0%[400]. - For the nine months ended September 30, 2025, total investment income was $187,029, down from $194,538 in 2024, a decrease of 3.9%[394]. - The net realized loss on investments for the three months ended September 30, 2025, was $(9,605), compared to a gain of $3,938 in 2024, reflecting a negative shift of $13,543[390]. - The net change in unrealized appreciation on investments was $6,916 for the three months ended September 30, 2025, a recovery from a depreciation of $(25,935) in 2024[391]. Borrowings and Commitments - As of September 30, 2025, the company had outstanding borrowings of $300,000 under the JPM Credit Facility and $100,000 under the 2025 UBS Credit Facility[416][417]. - The company had $125,000 in aggregate principal amount of 2026 Notes outstanding as of September 30, 2025[418]. - Unfunded commitments amounted to $70,681 as of December 31, 2024, decreasing to $47,816 by October 29, 2025[379]. - Unfunded commitments amounted to $48,689 as of September 30, 2025[424]. Share Repurchase - The company repurchased 1,215,751 shares during the nine months ended September 30, 2025, for a total cost of $11,984, averaging $9.86 per share[410]. - From October 1, 2025, to October 29, 2025, the company repurchased 302,571 shares at an average price of $9.35 per share, totaling $2,828[411]. - Since the inception of the 10b5-1 trading plan in August 2022, the company has repurchased 5,310,061 shares for a total of $53,333, averaging $10.04 per share[411]. Market Conditions and Risks - The U.S. inflation rate remains high, with persistent inflationary pressures expected in the near to medium-term, potentially affecting profit margins of portfolio companies[450]. - The company is subject to market volatility due to geopolitical events, energy price fluctuations, and trade disputes, which could impact its financial performance[450]. - The company expects that a rise in interest rates could lead to a substantial increase in net investment income, particularly due to the majority of its investments being in variable rate[445]. - The interest rate sensitivity analysis shows that a 300 basis point increase in interest rates could result in a 15.2% increase in net interest income, while a 300 basis point decrease could lead to a 12.7% decrease[447]. - Approximately 8.1% of the company's investments paid fixed interest rates as of September 30, 2025, which may lead to fair value declines in a rising interest rate environment[448]. Operational Costs - For the three months ended September 30, 2025, total operating expenses and income taxes increased to $40,144 from $38,009 in 2024, representing a 5.6% increase[387]. - The decrease in interest expense for the nine months ended September 30, 2025, was primarily due to lower SOFR rates, despite higher average borrowings[395]. Financial Management - The company has no off-balance sheet arrangements, ensuring transparency in its financial reporting[443]. - The company pays an annual administration fee of 0.20% on JPM's total financing commitment, which is part of its cost structure[446]. - The company’s long-term investments are expected to be financed primarily with equity and long-term debt, indicating a strategic approach to capital management[446].

Core Insights - Business Development Companies (BDCs) are significant for dividend-focused investors, contributing to the growth of dividend income [1] - The author has sold all BDC positions due to anticipated challenges in the market [1] Group 1: Investment Strategy - The company emphasizes a buy-and-hold investment strategy, focusing on quality over quantity in building a portfolio of high-quality, dividend-paying stocks [1] - The goal is to supplement retirement income through dividends within the next 5-7 years [1] Group 2: Target Audience - The company aims to assist hardworking lower and middle-class workers in building investment portfolios [1] - There is a desire to provide a new perspective to help investors achieve financial independence [1]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Group 1: Investment Strategy - A solid base of classic dividend growth stocks is essential for building a strong investment portfolio [1]. - Incorporating a mix of different asset types can lead to a highly efficient way to boost investment income [1]. - The total return achieved through this hybrid system is on par with the S&P index, indicating its effectiveness [1].