MidCap Financial Investment Announces Quarterly Dividend of $0.38 per Share

MidCap Financial Investment (MFIC) has declared a $0.38 per share quarterly dividend, in line with previous dividends. The forward yield is 11.77%. The dividend is payable on September 25, with a record date of September 9 and an ex-dividend date of September 9.

MidCap Financial Investment Corporation (MFIC) has announced a quarterly dividend of $0.38 per share, aligning with its previous dividend policy. The dividend is set to be paid on September 25, 2025, with a record date of September 9, 2025, and an ex-dividend date of September 9, 2025. This dividend represents a forward yield of 11.77%.

The dividend payment is part of the company's ongoing commitment to shareholder value. MFIC has consistently maintained a dividend payout ratio of approximately 97.4%, indicating a strong financial position and the ability to support dividend distributions. The forward yield of 11.77% is calculated based on the current net investment income (NII) of $0.39 per share and the net asset value (NAV) of $14.75 per share as of June 30, 2025.

The company's financial results for the second quarter of 2025 showed mixed performance. While net investment income (NII) increased to $0.39 per share from $0.37 in the first quarter, the net asset value (NAV) decreased to $14.75 per share from $14.93 in the previous quarter. This decline in NAV was attributed to challenges faced by a handful of companies within the portfolio. However, MFIC's strategic management of its exposure to Merx Aviation Finance, which reduced its exposure from approximately 5.5% to 2.8% of the total portfolio, is a positive development.

The company also maintained strong investment activity during the quarter, with $262 million in new commitments and $254 million in gross fundings. These activities demonstrate MFIC's continued commitment to portfolio growth and expansion. The company's net leverage ratio increased to 1.44x from 1.31x in the previous quarter, indicating a more aggressive use of debt financing. While this strategy could boost returns in a stable environment, it also increases risk if credit conditions deteriorate.

Overall, MFIC's dividend declaration reflects the company's strong financial health and commitment to shareholder returns. Investors should monitor the company's ongoing performance and strategic initiatives, including the expected $90 million net repayment from Merx Aviation Finance, which will further reduce the company's exposure to Merx and potentially enhance future earnings.

References
[1] https://www.stocktitan.net/news/MFIC/mid-cap-financial-investment-corporation-reports-financial-results-wi4bwl34el2o.html