Great Elm Capital (GECC) Declares $0.35 Dividend

Great Elm Capital said on May 4, 2023 that its board of directors declared a regular quarterly dividend of $0.35 per share ($1.40 annualized). Previously, the company paid $0.35 per share.

Shares must be purchased before the ex-div date of June 14, 2023 to qualify for the dividend. Shareholders of record as of June 15, 2023 will receive the payment on June 30, 2023.

At the current share price of $8.08 / share, the stock's dividend yield is 17.33%.

Looking back five years and taking a sample every week, the average dividend yield has been 17.42%, the lowest has been 9.90%, and the highest has been 65.93%. The standard deviation of yields is 8.01 (n=199).

The current dividend yield is 0.01 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.17. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is -0.77%.

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What is the Fund Sentiment?

There are 3 funds or institutions reporting positions in Great Elm Capital. This is unchanged over the last quarter. Average portfolio weight of all funds dedicated to GECC is 0.73%, an increase of 131.91%. Total shares owned by institutions increased in the last three months by 26.75% to 300K shares.

Analyst Price Forecast Suggests 13.61% Upside

As of April 24, 2023, the average one-year price target for Great Elm Capital is 9.18. The forecasts range from a low of 9.09 to a high of $9.45. The average price target represents an increase of 13.61% from its latest reported closing price of 8.08.

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The projected annual revenue for Great Elm Capital is 29MM, a decrease of 99.96%. The projected annual non-GAAP EPS is 1.28.

What are Other Shareholders Doing?

HOBIX - Holbrook Income Fund Class I holds 300K shares representing 0.03% ownership of the company. In it's prior filing, the firm reported owning 236K shares, representing an increase of 21.11%. The firm increased its portfolio allocation in GECC by 15.96% over the last quarter.

Great Elm Capital Background Information
(This description is provided by the company.)

Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC seeks to generate attractive, risk-adjusted returns through both current income and capital appreciation.

This story originally appeared on Fintel.