Horizon Technology Finance (HRZN) offers a 17.77% dividend yield, attracting income-focused investors.

Horizon Technology Finance (HRZN) offers a 17.77% dividend yield, attracting income-focused investors.

Horizon Technology Finance (HRZN), a company listed on the NASDAQ, has been drawing attention from income-focused investors due to its high dividend yield. As of the current date, HRZN offers an annual dividend of $1.32 per share, translating to a dividend yield of 15.05% [1].

The company's dividend payout ratio, which indicates the proportion of earnings paid out as dividends, is notably high. Based on trailing 12 months of earnings, HRZN's payout ratio is -1,100.00%, suggesting that the company is paying out more than its earnings [1]. This ratio is also high when considering this year's estimates (95.65%) and next year's estimates (104.76%). However, it is important to note that such a high payout ratio might not be sustainable in the long term and could signal potential risks to the company's financial health.

HRZN's dividend history shows a consistent monthly payout of $0.11 per share. The next scheduled payment is set for Thursday, May 15, 2025, to investors who owned the stock before the ex-dividend date of Wednesday, April 16, 2025 [1]. Over the past three years, the company's dividend has grown by an average of 3.23% per year, indicating a steady increase in dividend payments.

While HRZN's high dividend yield is attractive to income-focused investors, it is essential to consider the potential risks associated with the company's high payout ratio. Investors should closely monitor the company's financial performance and ensure that the dividend payouts are sustainable.

References:

[1] https://www.marketbeat.com/stocks/NASDAQ/HRZN/dividend/