Eagle Point Credit Company Inc. (ECC) to Issue Monthly Dividend of $0.06 on October 30th

Eagle Point Credit Company Inc. (NYSE:ECC) announced a monthly dividend on Thursday, August 13th. Stockholders of record on Tuesday, October 13th will be paid a dividend of 0.06 per share by the investment management company on Friday, October 30th. This represents a c) dividend on an annualized basis and a dividend yield of 18.5%. The ex-dividend date of this dividend is Tuesday, October 13th.

Eagle Point Credit has increased its dividend payment by an average of 0.1%per year over the last three years. Eagle Point Credit has a payout ratio of 127.7% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Eagle Point Credit to earn $0.69 per share next year, which means the company may not be able to cover its $1.20 annual dividend with an expected future payout ratio of 173.9%.

Eagle Point Credit Stock Performance

Shares of ECC opened at $3.88 on Friday. The stock has a market capitalization of $513.64 million, a price-to-earnings ratio of 5.80 and a beta of 0.36. Eagle Point Credit has a 12 month low of $3.46 and a 12 month high of $7.77. The firm has a fifty day simple moving average of $3.78 and a 200 day simple moving average of $4.04. The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.02.

Eagle Point Credit (NYSE:ECC) last issued its quarterly earnings results on Thursday, August 13th. The investment management company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). Eagle Point Credit had a negative net margin of 84.29% and a negative return on equity of 1.74%. The business had revenue of $37.90 million during the quarter, compared to analyst estimates of $41.62 million. Research analysts forecast that Eagle Point Credit will post 0.69 EPS for the current fiscal year.

Key Headlines Impacting Eagle Point Credit

Here are the key news stories impacting Eagle Point Credit this week:

• Positive Sentiment: Monthly dividends reaffirmed: ECC declared $0.06-per-share monthly dividends for October, November and December, equivalent to approximately $0.72 annually and an indicated yield of about 18.6%. The continued payout may support investor interest in the income-focused investment company.
• Positive Sentiment: Preferred dividend declared: Eagle Point Credit also announced a $0.1406 dividend on its 6.75% Series D preferred shares, signaling continued servicing of its preferred securities. Eagle Point Credit Company Inc. 6.75% PFD SR D declares dividend
• Neutral Sentiment: Portfolio repositioning continues: Second-quarter net investment income declined amid efforts to reposition ECC’s portfolio. The changes could affect near-term results but may be intended to improve portfolio quality or future returns. Eagle Point Credit Q2 net investment income slips amid portfolio repositioning
• Negative Sentiment: Quarterly results fell short of expectations: ECC reported second-quarter EPS of $0.17, below the $0.18 consensus estimate, while revenue of $37.9 million missed analyst expectations of $41.62 million. The earnings miss and reported negative net margin and return on equity may weigh on sentiment, particularly because sustained earnings are important to supporting the company’s unusually high dividend yield. Eagle Point Credit Q2 Earnings Snapshot

About Eagle Point Credit

Eagle Point Credit Company is a closed-end, non-diversified management investment company that seeks to generate attractive risk-adjusted returns primarily through investments in collateralized loan obligations (CLOs) and related structured credit instruments. The firm is externally managed by Eagle Point Credit Management, LLC, a specialized credit asset manager focused on the structured credit markets. Eagle Point Credit Company’s shares trade on the New York Stock Exchange under the ticker symbol ECC.

The company’s investment strategy centers on acquiring both equity and debt tranches of actively managed CLOs alongside opportunistic positions in senior secured loans, high-yield bonds and credit derivatives.