Nowadays it seems very hard to find quality dividend stocks at a bargain. Especially those in the BDC sector ( BIZD ) since many have seen their share prices balloon the past 2 years, thanks in part to Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I' ...

As many of my followers have noticed, when it comes to BDCs, I tend to prefer high quality and am even willing to pay a premium over NAV just to keep the potential downside risk limited. Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policyleve ...

Core Viewpoint - CION Investment Corporation is currently trading at a significant discount to its net asset value (NAV), which is viewed as unjustified given its solid portfolio strategy and financial performance [2][23]. Company Overview - CION Investment Corporation operates as an externally managed business development company with a market capitalization of approximately $639 million, focusing on high-quality debt investments in US-based middle market companies with annual EBITDA between $20 million and $75 million [2]. - The company has achieved a total return of nearly 52% since its inception in 2021, outperforming the VanEck BDC Income ETF [2]. Financial Performance - CION reported a net investment income of $0.43 per share for Q2, exceeding estimates by $0.04, with total investment income reaching $61.3 million, reflecting a 4.9% year-over-year increase [10]. - The current dividend yield stands at 13.8%, with the latest declared quarterly dividend at $0.36 per share, indicating a distribution coverage ratio of 119% [20][21]. Valuation Metrics - CION's stock is trading at a 26.31% discount to NAV, which has improved from a nearly 50% discount at its lowest point in 2022 [4]. - The average price target from Wall Street analysts is $12 per share, suggesting a modest upside of 2% from current levels [5]. Interest Rate Impact - Approximately 81.1% of CION's investments are structured on a floating rate basis, benefiting from the recent interest rate hikes by the Federal Reserve [5]. - The anticipated interest rate cuts may lead to a temporary decrease in earnings, but could also stimulate portfolio growth by increasing the volume of borrowers in the market [8][14]. Portfolio Composition - CION maintains a diverse portfolio with 107 portfolio companies, focusing primarily on first-lien senior secured debt, which provides a higher priority for repayment in case of bankruptcy [18][19]. - New investment commitments totaled $148 million for Q2, primarily in first-lien senior secured debt, indicating a commitment to portfolio growth [15]. Risk Assessment - The non-accrual rate for CION's portfolio has increased slightly to 1.36% of fair value, but remains competitive compared to peers in the sector [22].

Financial Data and Key Metrics Changes - CION reported a net investment income of $23 million or $0.43 per share for Q2 2024, a decrease from $32.6 million or $0.60 per share in Q1 2024, reflecting a decline of $9.6 million or $0.17 per share [19] - Total investment income for Q2 was $61.4 million, down from $73.6 million in Q1, primarily due to lower income from restructuring and prepayment activities [19] - Total operating expenses decreased to $38.4 million from $41 million in Q1, mainly due to lower advisory fees [20] - Net asset value (NAV) per share increased to $16.08 from $16.05, representing a 0.2% increase [21] Business Line Data and Key Metrics Changes - The weighted average coupon for total funded debt investments was approximately SOFR plus 6.6% for the quarter, consistent with previous quarters [14] - CION made $148 million in new investment commitments across 3 new and 16 existing portfolio companies, with $137 million funded [15] - The portfolio's nonaccruals increased from 0.86% to 1.36% of fair value, with one new loan added to nonaccrual status [16] Market Data and Key Metrics Changes - The current debt mix is about 60% secured and 40% unsecured, with over 85% in floating rate [21] - The weighted average cost of debt capital remained at about 8.4%, unchanged from the previous quarter [21] Company Strategy and Development Direction - CION's strategy focuses on a conservatively positioned loan portfolio combined with opportunistic first lien investing in complex special situations, aiming for attractive risk-adjusted returns [5] - The company remains selective in evaluating new deal opportunities, particularly in the middle-market direct lending portfolio and lightly syndicated loan market, due to a challenging market environment [8] - CION's recent amendment of its largest secured credit facility aims to reduce the cost of capital and provide increased operational flexibility [9] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging market environment with significant capital chasing a limited number of new deal opportunities, leading to tighter credit spreads [8] - The company remains cautiously optimistic about its credit performance and is prepared to adapt as market conditions evolve [8] - Management emphasized the importance of maintaining a strong balance sheet and liquidity to support future investments [21] Other Important Information - CION paid total distributions of $0.41 per share in Q2, including a base distribution of $0.36, which is an increase from $0.34 in Q1 [22] - The trailing 12-month distribution yield was 10.5% based on average NAV and 13.9% based on quarter-end market price [23] Q&A Session Summary Question: Are spreads on new originations stabilizing? - Management indicated that spreads remain tight due to supply and demand dynamics, with no signs of stabilization [24] Question: What is the mix between new and follow-on activity in the pipeline? - Management noted that the mix remains similar to Q2, with a balance of new issues and follow-on investments [25] Question: How does the company manage leverage in the current economic outlook? - The target leverage range is about 1.25, with the current leverage at 1.13, slightly increased due to net investment activity [26] Question: Are there signs of weakening in the economy affecting the portfolio? - Management stated that they have been underwriting defensively and have not observed significant changes in credit fundamentals [27][28] Question: Can you provide details on the buyback program? - The buyback program is currently programmatic and will continue as long as the share price is undervalued [30]

Exhibit 99.1 CION INVESTMENT CORPORATION REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Disciplined Capital Deployment Contributes to Net Portfolio Growth For Immediate Release NEW YORK, August 8, 2024 — CION Investment Corporation (NYSE: CION) ("CION" or the "Company") today reported financial results for the second quarter ended June 30, 2024 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. CION also announced that, on August 5, 2024, its co-chief executive officers declared a thir ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-54755 CĪON Investment Corporation (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | |-- ...

Evolution of CION Investment Corporation 2012 0.002% $1.15B 30+ Through the years, this BDC helped to deliver significant dividends along the way to accumulate a total of $16.01 in distributions paid out. Admittedly, returns here were partially offset by a decline in net asset value per share through this period. | --- | --- | --- | --- | --- | |-----------------------------------|----------------------------------------------------------|------------------------------|---------------|---------------| | | D ...

Maryland 45-3058280 ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. Item 9.01. Financial Statements and Exhibits. 99.1 Press Release dated June 12, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf ...

DNY59 Overview CION Investment Corporation (NYSE:CION) is a newer business development company with an inception year of only 2021. Since we don't have much historical data to base an analysis on, I opted to take a look into the company's fundamentals when it comes to investment quality, risk management, and distribution policy. I decided that CION was worth the time to research after seeing that the price performance and total return have both been strong over the last year. Data by YCharts CION's main foc ...

Financial Data and Key Metrics - Total investment income for Q1 was $73.6 million, a 23% increase from $60 million in Q4, driven by restructuring activities, make-whole payments, and prepayment premiums [19] - Net investment income for Q1 was $32.6 million or $0.60 per share, up from $21.8 million or $0.40 per share in Q4, a $10.8 million increase [38] - NAV per share decreased by $0.18 or 1.1% to $16.05 at the end of Q1, primarily due to price declines in the portfolio, partially offset by share repurchases [12] - Total assets stood at $2 billion, with total equity of $863 million and total debt of $1.07 billion, resulting in a net debt-to-equity ratio of 1.03x, down from 1.1x in Q4 [20] - The weighted average yield on debt and income-producing investments decreased by 48 basis points to 12.9% in Q1 [39] Business Line Data and Key Metrics - The company made $125 million in new investment commitments across five new and seven existing portfolio companies, with $107 million funded [7] - Approximately 60% of annual PIK income is derived from highly structured situations, such as litigation finance investments, with over 80% of PIK investments risk-rated one or two [6] - The portfolio remains defensive, with 84% in first lien investments and 86% in senior secured investments, while 99% of the portfolio is risk-rated three or better [37] - Risk-rated three investments increased from 6.5% to 10.4% of the portfolio, reflecting higher engagement or increased risk since initial purchase [37] Market Data and Key Metrics - The company completed first lien investments in new portfolio companies with a weighted average coupon of SOFR plus 6.3% [15] - Sales and repayments totaled $207 million in Q1, primarily from full repayments of debt investments in Ampac, Services Compression, Pentec, and R.R. Donnelley [36] - Non-accruals declined slightly from 0.89% of fair value at the end of Q4 to 0.86% at the end of Q1 [16] Company Strategy and Industry Competition - The company focuses on first lien investments at the top of the capital structure, avoiding riskier mezzanine and equity co-investments, while utilizing yield-enhancing provisions like PIK features and call protection [14] - The company remains selective with new investments, focusing on middle-market companies with $20 million to $50 million of annual EBITDA, avoiding larger, more commoditized deals [66] - The company continues to identify opportunities in the syndicated loan market, acquiring discounted first lien loans and playing active roles in refinancing or restructuring processes [70] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong financial results driven by investment activity and yield-enhancing provisions, with a focus on maintaining a defensive portfolio [10] - The company expects active repayment trends to continue in 2024, fueled by strong cash inflows into direct and syndicated loan funds [16] - Management remains optimistic about credit performance, with only 1% of the portfolio risk-rated four or five, and borrowers showing stable EBITDA trends [60] - The company is actively working to extend credit facilities for an additional two to three years, aiming to diversify its debt mix and expand lending partners [22] Other Important Information - The company declared a Q2 base distribution of $0.36 per share, a 6% increase from Q1, marking the fourth increase since its listing in October 2021 [23] - The company repurchased approximately 424,000 shares at an average price of $11 per share, totaling $4.7 million, reflecting confidence in the stock's undervaluation [63] - The company plans to declare a midyear supplemental distribution in June, payable on July 12 [42] Q&A Session Summary Question: Quantify revenue from transaction and restructuring fees in Q1 that may not recur in Q2 - Answer: Approximately $7 million to $8 million in transaction and restructuring income was realized in Q1 [45] Question: Plans for extending the $30 million unsecured term loan maturing in Q3 and preference for fixed or floating rate funding - Answer: The company is evaluating opportunities in the debt capital markets but is currently focused on extending existing credit facilities [46] Question: Explanation of upgrades and downgrades in the internal risk rating scale - Answer: Investments are upgraded to risk rating one only when there is knowledge of an imminent loan exit, with most investments remaining at rating two [47]