FS KKR Capital Corp Stock News

PHILADELPHIA and NEW YORK , Dec. 20, 2024 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced that it has priced an underwritten public offering of an additional $100 million in aggregate principal amount of its 6.125% notes due 2030 (the "Notes") pursuant to a reopening of such Notes. The Notes will mature on January 15, 2030 and may be redeemed in whole or in part at FSK's option at an...

Private credit/BDC investments offer exposure to structural growth and a significant portfolio yield enhancement. Yet, we have to be extra careful of not falling into value traps and investing in unsustainable yields, which are abundant in the inherently risky sector. In this article, I share a BDC portfolio that has ~10.5% yield, healthier fundamentals than the average in the space, and, impor...

FS KKR Capital Corp investors have outperformed the S&P 500 since my previous update, validating my bullish thesis. FSK's ability to outperform its business development company, or BDC, peers suggests the market was too pessimistic. Its portfolio remains well-poised to benefit from a higher for longer Fed, notwithstanding the peak in interest rates.

FS KKR Capital focuses on debt investments in US middle-market businesses with annual EBITDA between $50m and $150m, emphasizing long-term, defensive strategies. The company prioritizes stable, cash flow generating businesses, with nearly 60% of investments in senior secured, first-lien loans. FSK's conservative approach is evident in its low non-accruals at fair value, which stand at 1.7%.

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FS KKR Capital Corp offers a dividend yield exceeding 13%, making it attractive for income investors despite recent valuation increases. With a market cap of around $6 billion, FS KKR is one of the larger BDCs, lending to upper-middle market companies. Risks exist, but FS KKR Capital's substantial yield and market position warrant a closer look for income-focused investors.

FS KKR Capital's (FSK) portfolio quality has improved with a decrease in non-accrual rates, indicating higher average credit quality and strong earnings supporting a 13% dividend yield. The portfolio is diversified, with 67% in senior secured debt, and operates on a floating rate basis, sensitive to interest rate changes. Despite a slight decrease in NAV, FSK's management is actively investing ...

Investors love dividend stocks, especially the high-yield variety.