SLR Investment Corp. (SLRC) Maintains High Dividend Yield Amidst Analyst Expectations for Upside

SLR Investment Corp. (SLRC) maintains its quarterly dividend of $0.41 per share, yielding 10.3%. Analysts set an average price target of $16.78, indicating a 5.41% upside. GuruFocus projects a GF Value of $42.41, suggesting a 166.39% upside. The company has an average brokerage recommendation of 2.8, signifying a "Hold" status.

SLR Investment Corp. (SLRC) announced its quarterly financial results for the period ended June 30, 2025, with a net investment income (NII) of $21.6 million, translating to $0.40 per share [1]. The company declared a quarterly distribution of $0.41 per share, payable on September 26, 2025 [1]. The net asset value (NAV) increased to $18.19 per share, up from $18.16 in the previous quarter [1].

The comprehensive investment portfolio reached $3.2 billion in fair value, with 98.3% in senior secured loans and 95.9% in first lien positions [1]. Portfolio quality remained strong, with non-accruals at just 0.3% at fair value [1]. The company maintained a net debt-to-equity ratio of 1.17x and had over $650 million in available capital [1].

Notable achievements included record asset-based loan (ABL) originations and a strategic shift towards specialty finance investments, which now comprise over 80% of the portfolio fair value [1]. The company also completed a $50 million private offering of unsecured notes due 2028 at a 5.96% interest rate [1].

SLRC reported stable Q2 2025 financials, with $0.40 NII per share covering 98% of the $0.41 dividend, while maintaining stable NAV and low non-accrual rate [1]. The year-over-year comparison shows a decrease in investment income from $59.0 million in Q2 2024 to $53.9 million in Q2 2025, primarily due to a smaller income-producing portfolio and lower index rates [1]. However, this was partially offset by lower expenses, allowing earnings per share to increase from $0.43 to $0.44 [1].

The company's investment portfolio is diversified across approximately 940 unique issuers in over 110 industries, with an average exposure of just $3.5 million per issuer [1]. The portfolio composition shows a strong focus on senior secured investments, with 98.3% of the total portfolio in this category, and 95.9% in first lien positions [1]. This conservative positioning helps explain the strong credit performance.

Analysts set an average price target of $16.78, indicating a 5.41% upside [2]. GuruFocus projects a GF Value of $42.41, suggesting a 166.39% upside [2]. The company has an average brokerage recommendation of 2.8, signifying a "Hold" status [2].

References:
[1] https://www.stocktitan.net/news/SLRC/slr-investment-corp-announces-quarter-ended-june-30-2025-financial-8q0qzcm2i4jc.html
[2] GuruFocus