Core Viewpoint - Great Elm Capital Corp. (NASDAQ:GECC) is facing challenges in its financial performance, particularly in Q3 2025, which has led to a revised price target from analysts while maintaining a buy rating. Financial Performance - In Q3 2025, Great Elm Capital Corp. reported net investment income (NII) of $2.4 million, or $0.20 per share, a significant decline from $5.9 million, or $0.51 per share, in Q2 2025, primarily due to the absence of a distribution from an insurance-related investment [4] - The company maintained a distribution of $0.37 per share during the third quarter and approved a $10 million share repurchase program [3] - The company raised $27 million in equity and refinanced its highest-cost debt to strengthen its balance sheet [3] Analyst Insights - Clear Street analyst Mickey Schleien lowered the price target for GECC to $8.50 from $10 while maintaining a Buy rating, citing a "rough" Q3 with multiple credit issues and expectations of lower earnings ahead, along with potential dividend pressure in 2026 [2] Investment Strategy - Great Elm Capital Corp. focuses on generating current income and capital appreciation through investments in debt and income-producing equity securities, including specialty finance businesses and collateralized loan obligations (CLOs) [5] - Management plans to deploy $25 million in cash and over $20 million from monetizing non-yielding assets into income-generating investments [4] Market Position - GECC is included among the 15 stocks with the highest dividend yields, indicating its attractiveness for income-focused investors [1]

OFS Capital Corporation (NASDAQ:OFS) is included among the 15 Stocks with Highest Dividend to Invest in. Lucid Capital Initiates OFS Capital (OFS) at Neutral With a $7 Price Target Photo by Dan Dennis on Unsplash On November 4, Lucid Capital began coverage of OFS Capital Corporation (NASDAQ:OFS) with​ a Neutral rating and a $7 pric‍e target, as reported by The Fly. The firm noted th‌at‍ it would‍ like to see f‍ewer nonaccrual in⁠vestm‍ents,⁠ r‍educed leverage, and a​ higher share of i‍nterest-earning as ...

Core Insights - The end of the government shutdown is a significant relief for small businesses, allowing them to resume operations and cash flow [2][3]. Group 1: Impact on Small Businesses - Small businesses are experiencing a resurgence as government payments resume, particularly benefiting defense contractors and tech suppliers [3]. - FS Credit Opportunities (FSCO), a small business lender, has a 3.7% stake in TCFIII Owl Finance, which is poised to benefit from the unlocking of contracts [4]. - FSCO also lends to Penn Foster, an online education platform, which can now restart funding and enrollments after federal job grants were frozen during the shutdown [5]. Group 2: Performance of FSCO - FSCO's net asset value (NAV) has increased by 1.7% in 2025 despite the disruptions caused by the shutdown [7]. - FSCO has maintained its monthly dividend payments, increasing from 6 cents to 6.8 cents per share, yielding 12.5% annually [8]. - The current trading price of FSCO is at a 10% discount to its NAV, presenting a potential opportunity for contrarian investors [10][11].

Core Viewpoint - Clear Street upgraded Capital Southwest Corporation (CSWC) from Hold to Buy, maintaining a price target of $22, following strong Q3 results that highlight the company's resilient earnings capacity and disciplined underwriting approach [1][2]. Financial Performance - In Q3 2025, Capital Southwest reported $44.8 million in gains from equity exits, leading to an increase in undistributed taxable income per share from $0.64 in September 2024 to $1.13 [3]. - The board approved regular monthly dividends totaling $0.58 per share for the October–December period, along with a supplemental dividend of $0.06 per share, resulting in total dividends for the quarter of $0.64 [3]. Capital Raising - During the quarter, Capital Southwest raised approximately $40 million in equity through its at-the-market program at an average share price of $22.81 [4]. Business Model - Capital Southwest is an internally managed business development company that provides tailored debt and equity financing solutions to U.S. middle-market firms [4].

Core Points - Saratoga Investment Corp. has declared a special cash distribution of $0.25 per share for the third quarter of fiscal 2026, in addition to its regular monthly dividend of $0.25 per share, resulting in a total cash distribution of $0.50 per share for shareholders of record as of December 2, 2025 [1][2][3] Dividend Details - The special dividend will be paid on December 18, 2025, coinciding with the regular monthly dividend payment [2] - This special dividend is intended to meet the final spillover income distribution requirements for fiscal year 2025 [2] - The total dividend per share for fiscal Q3 2026 is $0.50, which includes both the base and special dividends [4] Management Commentary - The Chairman and CEO of Saratoga Investment expressed satisfaction in rewarding shareholders with a year-end special dividend for the second consecutive year, highlighting strong spillover income and a commitment to efficient capital return [3] - The company aims to provide enhanced value to shareholders while maintaining a buffer against potential adverse events, including interest rate cuts [3] Dividend Reinvestment Plan - Shareholders have the option to receive the special dividend in cash or in shares of common stock through the company's dividend reinvestment plan (DRIP) [3] - Shareholders must instruct their brokers if they prefer to receive dividends in common stock prior to the record date [3] Company Overview - Saratoga Investment is a specialty finance company focused on providing customized financing solutions to U.S. middle-market businesses, primarily through senior and unitranche leveraged loans and mezzanine debt [6] - The company is regulated as a business development company and is externally managed by Saratoga Investment Advisors, LLC [6] - Saratoga Investment manages a $650 million collateralized loan obligation (CLO) fund and co-manages a joint venture fund with a $400 million CLO [6]

Group 1 - The Blackstone Secured Lending Fund (BXSL) is a significant entity in the Business Development Company (BDC) sector, focusing on flexible financing solutions for middle-market companies [1] - BXSL is recognized for its stable portfolio characteristics, particularly in terms of Net Asset Value (NAV) and earnings quality, but faces competition from other BDCs that may provide better value [1] - The consensus price target for BXSL has remained stable at $28 over the past year, indicating steady analyst confidence in its performance [2] Group 2 - Despite the stable price target, BXSL is viewed as one of the most overvalued quality BDC stocks, with a notable valuation gap compared to its peers [3] - RBC Capital has set a price target of $30 for BXSL, suggesting potential concerns regarding its valuation and possible rating downgrade [3] - The combination of a stable price target and overvaluation raises questions about BXSL's long-term value proposition, which could affect investor sentiment and future price targets [4][5]

Core Insights - Main Street Capital met Wall Street's revenue expectations for Q3 CY2025, achieving a revenue of $139.8 million, reflecting a year-on-year growth of 2.2% [1][2] - The company's non-GAAP profit was reported at $1.03 per share, exceeding analysts' consensus estimates by 5.2% [1][2] Company Performance - Pre-tax profit for Q3 CY2025 was $89.52 million, resulting in a 64% profit margin [2] - The annualized return on equity was reported at 17.0%, indicating strong operational performance [2] - The market capitalization of Main Street Capital stands at $5.12 billion [2] Revenue Growth - Over the past five years, Main Street Capital has achieved a compounded annual growth rate of 20.5% in revenue, outperforming the average financials company [4] - The annualized revenue growth over the last two years was 7.6%, which is below the five-year trend but still considered respectable [5]

Core Viewpoint - Prospect Capital Corporation reported its financial results for the fiscal quarter ending September 30, 2025, showing a net investment income of $79.35 million, a slight increase from the previous quarter, but a decrease compared to the same quarter last year. The company also declared distributions to common shareholders and highlighted its investment strategy focusing on first lien senior secured loans and real estate investments. Financial Results - Net Investment Income ("NII") for the quarter was $79,350,000, compared to $79,043,000 in the previous quarter and $89,877,000 in the same quarter last year [2] - NII per Common Share remained at $0.17, unchanged from the previous quarter but down from $0.21 year-over-year [2] - Total Assets decreased to $6,641,870,000 from $6,804,938,000 in the previous quarter and $7,592,705,000 year-over-year [2] - Net Income applicable to Common Shareholders was $48,087,000, a significant recovery from a loss of $226,369,000 in the previous quarter and a loss of $165,069,000 in the same quarter last year [2] - Distributions to Common Shareholders totaled $62,393,000, slightly up from $61,181,000 in the previous quarter but down from $77,358,000 year-over-year [2] Investment Strategy - The company has focused on first lien senior secured middle market loans, increasing its first lien mix by 701 basis points to 71.1% from June 2024 [7] - The second lien senior secured middle market loans decreased by 292 basis points to 13.5% [7] - The company exited its subordinated structured notes portfolio, reducing its mix to 0.3% [7] - Investments in real estate properties have yielded an unlevered investment-level gross cash IRR of 24% since the inception of this strategy in 2012 [9] Portfolio Update - Total Investments as of September 30, 2025, were $6,532,842,000, down from $6,693,501,000 in the previous quarter and $7,329,338,000 year-over-year [12] - The number of portfolio companies decreased to 92 from 97 in the previous quarter and 117 year-over-year [12] - The annualized current yield for all investments was 9.1%, down from 9.6% in the previous quarter [12] Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility and various debt instruments [15] - On October 30, 2025, the company completed an institutional issuance of approximately $168 million in senior unsecured notes due 2030 [16] - The weighted average cost of unsecured debt financing was 4.54%, reflecting a slight increase from the previous periods [20] Dividend Information - The company declared monthly cash distributions of $0.0450 per share for November 2025, December 2025, and January 2026 [5] - Cumulative distributions to common shareholders since inception amount to approximately $4.6 billion, with $21.79 per share distributed [5]

Core Viewpoint - Nuveen Churchill Direct Lending Corp. reported its financial results for the quarter ended September 30, 2025, highlighting a net investment income of $0.43 per share [1]. Financial Performance - The company achieved a net investment income of $0.43 per share for the quarter [1]. - The report includes details on net realized and unrealized gains, although specific figures were not provided in the excerpt [1].

Core Insights - Capital Southwest Corporation reported strong financial results for the second fiscal quarter ended September 30, 2025, with significant origination activity and a solid increase in undistributable taxable income [3][4]. Financial Highlights - The company originated approximately $245 million in new commitments, including $165.8 million in seven new portfolio companies and $79.7 million in ten existing portfolio companies [3][4]. - The Board declared a regular monthly dividend of $0.1934 for October, November, and December 2025, along with a quarterly supplemental dividend of $0.06 to be paid in December 2025 [3][23]. - Capital Southwest successfully raised $350 million at a 5.950% interest rate through its inaugural index-eligible unsecured bond transaction [3][17]. - The total investment portfolio reached $1.9 billion, with a credit portfolio of $1.7 billion, primarily consisting of 99% first lien senior secured debt [6][29]. Investment Activities - The company generated net realized gains of $3.5 million from the exit of one equity investment, contributing to an estimated undistributed taxable income of $1.13 per share [5][6]. - The weighted average yield on debt investments was reported at 11.5% [6]. Operating Results - Total investment income for the quarter was $56.9 million, an increase from $55.9 million in the prior quarter, driven by higher cash interest income and fees [7]. - Total operating expenses (excluding interest) decreased to $6.9 million from $8.0 million in the previous quarter, mainly due to reduced employee compensation [8]. - Pre-tax net investment income was $34.0 million, compared to $32.7 million in the prior quarter [9]. Balance Sheet and Liquidity - As of September 30, 2025, the company had $87.4 million in cash and cash equivalents and $632.2 million of unused capacity under its credit facilities [13]. - The regulatory debt to equity ratio was 0.91 to 1, indicating a strong capital structure [13]. Shareholder Returns - Total dividends for the quarter ended September 30, 2025, amounted to $0.6402 per share, with a regular monthly dividend coverage of 104% based on pre-tax net investment income [6][24]. - The company did not repurchase any shares under its share repurchase program during the quarter [22]. Future Outlook - Capital Southwest has scheduled a conference call to discuss the second quarter 2026 financial results, indicating ongoing transparency and engagement with investors [26].