New Mountain Finance: Time To Worry About The Dividend? (Downgrade)
Portfolio Pulse from
New Mountain Finance has lowered its supplemental dividend to $0.01 per share and paused the program due to declining net investment income. The dividend pay-out ratio has increased to 97%, raising concerns about a potential future dividend cut. The stock has been downgraded to 'Hold' due to a narrower margin of safety and expected lower net investment income.
November 17, 2024 | 6:00 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
New Mountain Finance has reduced its supplemental dividend to $0.01 per share and paused the program due to declining net investment income. The dividend pay-out ratio is now at 97%, increasing the risk of a future dividend cut. The stock has been downgraded to 'Hold'.
The reduction in supplemental dividend and the pause in the program indicate financial strain due to falling net investment income. The high dividend pay-out ratio suggests a potential future cut, which is negative for investors relying on dividend income. The downgrade to 'Hold' reflects these concerns, likely leading to a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100