Manhattan Bridge Capital Announces $0.115 Dividend on 10/8 – What to Expect on Ex-Dividend Date

Introduction

Manhattan Bridge Capital (LOAN) continues to demonstrate a consistent dividend policy, which appeals to income-focused investors. On October 8, 2025, the stock will go ex-dividend, with a cash dividend of $0.115 per share. This payout aligns with the company’s broader strategy of distributing a significant portion of its earnings to shareholders.

The market environment leading up to the ex-dividend date appears stable, with the company maintaining strong operational performance. For context, Manhattan Bridge Capital has historically demonstrated a pattern of steady dividends, though without stock dividends, its approach remains focused on cash returns rather than capital appreciation through reinvestment.

Dividend Overview and Context

The ex-dividend date is a critical event for shareholders, as it marks the cutoff for eligibility to receive the upcoming dividend. On this date, the stock price typically adjusts downward by approximately the dividend amount, reflecting the distribution of value to shareholders.

In the case of Manhattan Bridge Capital, the $0.115 per share cash dividend offers a yield of approximately 10.7% based on its most recent closing price of around $1.07. This yield is relatively high compared to industry averages and positions LOAN as a compelling option for income-focused investors.

Investors should be aware that while the ex-dividend date may lead to an initial price drop, historical patterns suggest that the stock may recover relatively quickly afterward. The stock's performance post-dividend can be influenced by broader market sentiment, company-specific news, and the timing of its next earnings release.

Backtest Analysis

A recent backtest of LOAN’s dividend behavior reveals a moderate tendency for the stock to recover after the ex-dividend date. On average, the stock has taken about 9.67 days to recover its dividend-adjusted price. Additionally, there is a 55% probability that the stock will rebound within 15 days of the ex-dividend date.

While this suggests a somewhat predictable pattern, the results are not definitive—implying that market conditions and external factors can still impact the stock’s short-term performance.

Driver Analysis and Implications

The recent dividend announcement was supported by strong financial performance in Manhattan Bridge Capital’s latest report. The company generated $5.02 million in total revenue and reported an operating income of $2.88 million. Notably, it has a total basic earnings per share (EPS) of $0.25, meaning the dividend payout ratio is approximately 46% (calculated as $0.115 divided by $0.25). This ratio suggests a sustainable and moderate payout level.

From a macroeconomic perspective, the current low-interest rate environment continues to benefit high-yield stocks like LOAN, as investors seek alternative sources of income. However, if broader interest rates rise, the appeal of high-yield dividends may diminish, potentially impacting demand for shares.

Investment Strategies and Recommendations

For short-term investors, a holding strategy around the ex-dividend date may allow capture of the dividend while potentially benefiting from the observed 15-day recovery pattern. Given the 55% chance of rebound within this window, entering the stock before the ex-date or holding through the first two weeks after may be prudent.

Long-term investors should consider the broader fundamentals of Manhattan Bridge Capital. With a healthy EPS and moderate payout ratio, the company appears to be on a stable path for consistent dividends. Investors should also monitor upcoming earnings reports and macroeconomic signals to gauge any shifts in the company's performance or the broader market.

Conclusion & Outlook

Manhattan Bridge Capital’s $0.115 per share dividend, set to go ex-dividend on October 8, 2025, represents a compelling opportunity for income investors. With a relatively high yield and moderate recovery potential in the weeks following the ex-date, the stock offers both immediate returns and potential short-term upside.

Looking ahead, investors should keep an eye on the company’s next earnings release for further insights into its performance and sustainability of the dividend. Continued strong operational metrics may support the current payout level and reinforce the stock’s appeal in a low-yield environment.