FS Credit Opportunities Corp (FSCO) will trade ex-dividend on 6/23/25 for its monthly dividend of $0.0678, payable on 6/30/25. The dividend works out to approximately 0.94% of the stock's recent price of $7.22. The estimated annual yield is 11.27%. FSCO shares are currently up 0.3% on the day.
FS Credit Opportunities Corp (FSCO) is set to trade ex-dividend on June 23, 2025, for its monthly dividend of $0.0678, which will be payable on June 30, 2025. The dividend represents approximately 0.94% of the stock's recent price of $7.22, indicating a strong yield. The estimated annual yield is 11.27%, making it an attractive option for income-focused investors [1].
The company's shares have been performing well, with a 0.3% increase on the day of the announcement. This positive momentum is driven by several factors, including the fund's focus on senior secured debt and its access to private credit markets. FSCO's closed-end structure offers superior performance and liquidity for private credit, with a 10.8% yield and strong NAV outperformance [2].
The fund's portfolio is composed of 73% private debt and 69% floating-rate credit, providing investors with a diversified credit strategy. The fund's active management is focused on senior secured, mostly floating-rate credit, ensuring a sustainable income strategy. This flexible approach allows the fund to shift allocations based on market conditions, enhancing its ability to generate reliable income [3].
Despite the recent price increase, FSCO continues to trade at a discount to its net asset value (NAV), which is currently 8% below the NAV. This discount provides an opportunity for investors to purchase shares at a lower price relative to the fund's underlying assets, potentially offering capital appreciation alongside the high dividend yield [4].
In summary, FS Credit Opportunities Corp (FSCO) presents a compelling investment opportunity for those seeking high income and potential capital appreciation. The fund's focus on private credit, strong NAV performance, and attractive dividend yield make it a solid choice for income-focused investors. As always, investors should conduct thorough research and consider their risk tolerance before making investment decisions.
References:
[1] https://www.nasdaq.com/articles/ex-div-reminder-fs-credit-opportunities-fsco-0
[2] https://stockanalysis.com/stocks/fsco/
[3] https://seekingalpha.com/article/4795758-fs-credit-opps-fsco-update-still-a-great-holding?source=affiliate_program:stockanalysis.com&utm_medium=affiliate&utm_source=stockanalysis.com&affid=858&oid=16&transaction=8fc93e250a114b338b744b0d712d207a
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