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Introduction
If income is what you seek, then income is what you should get. BDCs are popular amongst income investors and rightfully so. They are required by law to pay out most of their income in the form of dividends. However, as
FSK KKR Capital: The Improved 14.6% Yield Makes Them An Attractive Income Investment
Summary
- FSK KKR Capital Corp offers a near 15% forward yield, supported by solid fundamentals and improved portfolio metrics, making it an attractive income investment.
- The company has shown significant improvements in non-accruals and has increased liquidity while decreasing debt, positioning itself well for future economic headwinds.
- FSK trades at a 17.24% discount to NAV, providing an attractive entry point compared to peers trading at premiums.
- Despite potential recession risks, FSK's well-covered dividend and spillover income offer downside protection, making it a worthy buy for income-focused investors.
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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARCC, BXSL, SBUX, PEP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.