Image Source: UnsplashFS KKR Capital Corp (FSK) is a business development company based in the United States.Its portfolio is comprised of investments in senior secured loans and second lien secured loans of private middle market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies.It is focused on providing customized credit solutions to private upper middle-market companies, which it generally defines as companies with annual EBITDA of at least $50 million at the time of investment.FS KKR Capital Corp was incorporated in September 2008 and is headquartered in Philadelphia, PA.Three key data points gauge First FS KKR Capital Corp or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.FSK PriceOver the past year, FSK’s share price rose about 2.5% from $19.41 to $19.90 as of Monday’s market close.If FS KKR Capital stock trades in the range of $15.00 to $25.00 this next year, its recent $19.90 share price might rise to $21.50 by next year. Of course, FS KKR Capital’s price could drop about the same $1.60 estimated amount, or more.My annual upside estimate of $1.60, however, is about equal to the median of one-year price targets from ten analysts covering FSK for brokers.FSK DividendFS KKR Capital Corp has paid  Quarterly dividends since January 5, 2015. FSK’s upcoming Quarterly dividend, of $0.70 is payable January 3rd 2024 to shareholders on record as of December 12th this year.  A forward looking $2.80 annual dividend yields 14.07% at Monday’s $19.90 share price.FSK ReturnsTo put it all together, add the  annual dividend of  $2.80 to the price upside of $1.60 and find a $4.40 gross gain.At Wednesday’s $19.90 share price, a little under $1000 would buy 50 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.20 per share.Subtracting that likely $0.20 brokerage cost from the $4.40 estimated gross gain per share produces a net gain of $4.20 X 50  shares = $210.00 or a 21% estimated net gain.You might choose to pounce on FS KKR Capital Corp shares. FSK is a fifteen-year-old Pennsylvania Business Development Company that states: “The timing and amount of any future distributions on FSK’s shares of common stock are subject to applicable legal restrictions and the sole discretion of its board of directors. There can be no assurance as to the amount or timing of any such future distributions.”Furthermore, the estimated $140.70 dividend income from $1k invested is over 7 times greater than Monday’s FSK single share price.The exact track of FS KKR Capital Corp’s ongoing future prices and dividends are yet to be known.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: First Interstate BancSystem (FIBK)
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