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FS 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.FSK Launched in 2008 and is headquartered in Philadelphia, PA.Three key data points gauge FS KKR or any dividend paying firm.The key three are:(1) Price(2) Dividend(3) ReturnThose three keys also best tell whether any company has made, is making, and will make money.
FSK PriceFS KKR Capital’s share price grew 2.4% from $19.81 to $20.29 as of Tuesday’s market close.In the past 5 years the company’s share price has rarely been less than $9.40 nor higher than $43.52. FS KKR Capital price reached its all time high price February 28, 2017.If shares trade in the range of $18.00 to $22.00 this next year, the recent $20.29 share price might grow to $20.60. Of course, FSK share price could also drop about the same $0.31 estimated amount, or more.My $0.31 price upside estimate is based on the median of FSK one-year target prices estimated by 9 analysts tracking FSK for brokers.
FSK Dividend
FS KKR Capital has paid variable quarterly dividends since January 2014. The company’s most recent Q dividend of $0.70 was declared October 9th for shareholders of record December 4th and the payout is scheduled for December 18th.A resulting $2.80 Annual dividend yields 13.8%, as of Tuesday’s closing price.
FSK ReturnsPutting it all together, a $3.11 estimated annual gross gain per share shows up by adding FS KKR Capital’s annual $2.80 dividend to the estimated price upside of $0.31, totals that $3.11 gross gain.A little under $1000 buys 49 shares at Tuesday’s $20.29 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.20 per share out of the $3.11 gross-gain to give us a net gain of $2.91 X 49 shares = $142.59 for about a 14.25% estimated net gain for the year.Furthermore, the $138.00 annual dividend paid out from $1k invested is 6.8 times more than the $20.29 single share price. By these numbers, FSK could be an ideal dividend dog.Therefore, you might choose to pounce on FS KKR Capital. It is an 16 year-old variable quarterly dividend paying business development company with a 10-year dividend record.The exact track of FSK’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:Current Report: Blackstone Secured Lending Fund
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