FSK - FS KKR Capital Corp.
Shares of FS KKR Capital Corp. (NYSE: FSK - Get Free Report) have been given an average rating of "Reduce" by the eight ratings firms that are presently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation and seven have assigned a hold recommendation to the company. The average
High-yield credit vehicles look easy on the surface: Buy the ticker, collect the check, repeat.
Bullish (NYSE: BLSH - Get Free Report) and FS KKR Capital (NYSE: FSK - Get Free Report) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings. Insider and Institutional Ownership 36.3% of FS
The Dividend Harvesting Portfolio has achieved a 46.73% ROI with $3,219.84 forward annualized dividend income and a 7.81% yield. Recent additions include Starwood Property Trust (STWD) and FS KKR Capital Corp (FSK), both offering double-digit yields and trading at significant discounts. I expect continued outperformance as AI-driven productivity boosts big tech and the broader market, with dividend income on track to surpass $5,000 annually.
FS KKR Capital faces valuation pressure after two consecutive dividend cuts in Q4'25 and Q1'26 and persistent asset quality concerns. FSK's non-accrual ratio remains elevated at 3.8%, and dividend coverage is just 100%, signaling ongoing payout risk. I maintain a 'Hold' rating with a slightly negative outlook, citing potential for a dividend reset if loan quality does not improve and coverage drops below 100%.
So far, the Q2 earnings season has been positive for BDCs. Some BDCs have appreciated by double-digit figures. Among these BDCs are my two tactical trade ideas.
FSK trades at a 35% discount to NAV and offers a 13.8% forward dividend yield. It just reported its Q2 results after posting horrible Q1 results previously. I dig into the numbers to see what went right, what went wrong, and what would need to happen for me to want to buy the stock.
FS KKR Capital NYSE: FSK reported second-quarter 2026 net investment income of $0.44 per share and adjusted net investment income of $0.43 per share, while net asset value declined 2.8% sequentially to $18.30 per share.
FS KKR Capital Corp. remains a sell due to persistent NAV erosion, weak earnings, and thin dividend coverage. FSK's adjusted net investment income of $0.43 per share no longer fully covers its $0.44 dividend, with coverage propped up by a temporary incentive fee waiver. Portfolio fair value and investment income are in a clear downtrend, while net investment activity remains negative and software exposure heightens risk.
FS KKR Capital Corp. is upgraded to a buy after Q2 2026 results showed the first sequential NII growth in over a year. FSK trades at a -42% discount to NAV, with a fully covered 16.7% yield and a $300 million buyback program retiring shares at 59 cents on the dollar. Operational improvements include declining non-accruals, net leverage back within target, and expense reductions driving NII growth despite lower investment income.
FS KKR Capital Corp (FSK) Q2 2026 Earnings Call Transcript
FS KKR Capital (FSK) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to a loss of $0.6 per share a year ago.
PHILADELPHIA and NEW YORK, Aug. 6, 2026 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended June 30, 2026, and that its board of directors has declared a third quarter 2026 distribution of $0.44 per share for common stockholders. Financial and Operating Highlights for the Quarter Ended June 30, 2026 (1) Net investment income of $0.44 per share, compared to $0.42 per share for the quarter ended March 31, 2026 Adjusted net investment income(2) of $0.43 per share, compared to $0.41 per share for the quarter ended March 31, 2026 Net asset value of $18.30 per share as of June 30, 2026, compared to $18.83 per share as of March 31, 2026 Total net realized and unrealized loss of $0.56 per share, compared to a total net realized and unrealized loss of $2.00 per share for the quarter ended March 31, 2026 Adjusted net realized and unrealized loss(2) of $0.55 per share, compared to adjusted net realized and unrealized loss of $1.99 per share for the quarter ended March 31, 2026 Earnings (Loss) per share of ($0.13), compared to Earnings (Loss) per share of ($1.57) for the quarter ended March 31, 2026 Total purchases of $590 million versus $1,334 million of sales and repayments, including $9 million of net sales to the Company's joint venture, Credit Opportunities Partners JV, LLC Debt to equity ratio as of June 30, 2026 was 127%, compared to 138% as of March 31, 2026 Net debt to equity ratio(3) as of June 30, 2026 was 122%, compared to 131% as of March 31, 2026 Paid distributions to common stockholders totaling $0.42 per share(4) "During the second quarter, FSK generated Net Investment Income of $0.44 per share, reduced net leverage to within our target range, and made progress reducing our non-accrual assets," said Michael C.
The current market is built around AI. We are seeing more and more signs that the market is getting exhausted by the AI hype. In this setting, I am extra skeptical about high-risk and “too good to be true” yield instruments.
Blue Owl Capital cut its dividend to align it with its earnings power. Given the often huge dividend yields in the BDC sector, investors in Blue Owl Capital's competitors should take notice.
FS KKR Capital (FSK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The market is very richly priced right now, making high-quality companies trading at a deep discount a rare find. I share two deeply undervalued quality dividend machines yielding up to 11.6% that the market has thrown out with the bathwater. I also share the risks involved and detail why I think they are highly compelling buys right now.
FSK's shareholders had a tough year as its stock price dropped by 50%. Non-accruals have surged to 8.1% on a cost basis, and top-performing investments dropped to ~90%, signaling deteriorating credit quality. Despite substantial dividend cuts, coverage is weak at just 1.0x, leaving little margin of safety and raising the risk of further cuts.
PHILADELPHIA and NEW YORK, July 9, 2026 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced today plans to release its second quarter 2026 results before the opening of trading on the New York Stock Exchange on Thursday, August 6, 2026. FSK will host its second quarter 2026 results conference call via live webcast on Thursday, August 6, 2026 at 9:00 a.m.
Massive dividend yields are a huge draw for investors – both because everyone likes income