FS KKR Capital: Oversold Territory with 12.65% Dividend Yield

FS KKR Capital Corp (FSK) has a strong DividendRank, ranking in the top 10% of the coverage universe. The stock recently entered oversold territory with an RSI reading of 22.8, and its annualized dividend of 2.56/share translates to a 12.65% yield based on the recent share price of $20.24. A bullish investor could see the recent heavy selling as a sign that the exhaustion process is underway, making it a potential buy opportunity.

FS KKR Capital Corp (FSK) has been making headlines with its recent dividend declaration and financial performance. The company's board of directors has declared a quarterly dividend of $0.64 per share, with a forward yield of 12.65% [1]. This dividend is payable on October 2, 2025, for shareholders of record on September 17, 2025 [1].

FS KKR Capital's dividend yield is particularly attractive, ranking it in the top 10% of the coverage universe according to DividendRank [2]. The stock's annualized dividend of $2.56 per share, based on the recent share price of $20.24, equates to a 12.65% yield. This high yield is a significant draw for income-focused investors.

However, the company's recent financial performance has been less impressive. In its second quarter of 2025, FS KKR Capital reported a loss of $0.60 per share, which was a significant miss compared to the Zacks Consensus Estimate of $0.63 [2]. This quarterly loss represents an earnings surprise of -195.24%, indicating a substantial decline in earnings compared to the previous quarter. Over the last four quarters, the company has surpassed consensus EPS estimates two times but has also missed revenue estimates twice [2].

The stock's immediate price movement will likely depend on management's commentary on the earnings call. Despite the recent heavy selling, which has pushed the stock into oversold territory with an RSI reading of 22.8, a bullish investor could see this as a potential buy opportunity. The exhaustion process could be underway, and the high dividend yield makes the stock an attractive option for income seekers.

Investors should keep a close eye on the company's earnings outlook and the broader industry trends. The Zacks Rank for FS KKR Capital is currently #3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [2]. The company's industry rank is also a factor to consider, with the Financial - SBIC & Commercial Industry currently in the top 41% of Zacks industries [2].

In conclusion, FS KKR Capital Corp (FSK) offers an attractive dividend yield but has faced recent earnings challenges. Investors should weigh the potential benefits of the high yield against the company's recent financial performance and the broader market trends.

References:
[1] https://seekingalpha.com/news/4481023-fs-kkr-capital-declares-064-dividend-supplemental-distribution-of-006share
[2] https://www.nasdaq.com/articles/fs-kkr-capital-fsk-reports-q2-loss-lags-revenue-estimates