Eagle Point Credit: Is This 21% Yield Sustainable?
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Eagle Point Credit's 21% dividend yield is under scrutiny due to high fees, NAV drag, and share dilution. Despite a diverse portfolio, the fund's low coverage ratio and declining NAV per share raise concerns about the sustainability of future payouts.
November 26, 2024 | 9:00 am
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Eagle Point Credit's 21% dividend yield is at risk due to high fees, NAV drag, and share dilution. The fund's declining NAV per share and low coverage ratio are concerning for future payouts.
The article highlights several risk factors for ECC, including high fees, NAV drag, and share dilution, which threaten the sustainability of its high dividend yield. The declining NAV per share and low coverage ratio further exacerbate these concerns, suggesting potential negative impacts on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100