Fidus Investment Corporation Declares First Quarter 2025 Dividend

Rhea-AI Summary

Fidus Investment (NASDAQ:FDUS) has announced its dividend declaration for the first quarter of 2025. The Board of Directors has declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share. These dividends will be paid on March 27, 2025 to stockholders of record as of March 20, 2025.

The company has a dividend reinvestment plan (DRIP) in place, allowing stockholders to automatically reinvest their dividends in additional company shares unless they opt out. Stockholders with shares held by brokers must notify their financial intermediary to receive cash dividends. The final tax attributes for 2025 dividends will be determined after the tax year closes and may include ordinary taxable income, capital gains, qualified dividends, and return of capital.

Positive

• Declared total dividend of $0.54 per share ($0.43 base + $0.11 supplemental) for Q1 2025
• Maintains dividend reinvestment plan (DRIP) offering shareholders flexible distribution options

Negative

• None.

Insights

Investment Income Analyst

The declared total dividend of $0.54 per share for Q1 2025, comprising a $0.43 base dividend and a $0.11 supplemental dividend, signals robust underlying performance. The supplemental component is particularly noteworthy as it indicates excess earnings beyond what's needed for the regular dividend, suggesting strong portfolio company performance and effective investment management.

The dividend structure provides important insights into Fidus's business health. As a Business Development Company (BDC), FDUS must distribute at least 90% of its taxable income to maintain its tax status. The combination of base and supplemental dividends indicates the company is generating sufficient income to maintain its regular distribution while accumulating additional earnings for supplemental payouts.

The implementation of a Dividend Reinvestment Plan (DRIP) offers strategic benefits for both the company and investors. For FDUS, the DRIP provides an efficient mechanism for capital retention and reinvestment, potentially reducing the need for external financing. For investors, it enables automatic compound returns through share accumulation, though the tax implications differ from receiving cash dividends.

The payment date of March 27, 2025, with a record date of March 20, 2025, provides a relatively quick turnaround from declaration to distribution, reflecting strong liquidity management. The detailed explanation of taxable income determination demonstrates transparent communication with shareholders regarding the dividend's tax characteristics, which can vary between ordinary income, capital gains, qualified dividends, or return of capital.

EVANSTON, Ill., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”) today announced that its Board of Directors on February 18, 2025 declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the first quarter of 2025. The Company’s dividends will be payable on March 27, 2025 to stockholders of record as of March 20, 2025.

When declaring dividends, the Company’s Board of Directors reviews estimates of taxable income available for distribution, which differs from consolidated income under U.S. generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2025 taxable income, as well as the tax attributes for 2025 dividends, will be made after the close of the 2025 tax year. The final tax attributes for 2025 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of the Company’s common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

ABOUT FIDUS INVESTMENT CORPORATION

Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated for U.S. federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and is licensed by the U.S. Small Business Administration as a small business investment company.

Company Contact:	Investor Relations Contact:
Shelby E. Sherard	Jody Burfening
Chief Financial Officer	Alliance Advisors IR
(847) 859-3940	(212) 838-3777
ssherard@fidusinv.com	jburfening@allianceadvisors.com

FAQ

What is the total dividend amount declared by FDUS for Q1 2025?

FDUS declared a total dividend of $0.54 per share, consisting of a $0.43 base dividend and a $0.11 supplemental dividend for Q1 2025.

When will FDUS pay its Q1 2025 dividend?

FDUS will pay its Q1 2025 dividend on March 27, 2025 to stockholders of record as of March 20, 2025.

How does the FDUS dividend reinvestment plan (DRIP) work?

Under FDUS's DRIP, dividends are automatically reinvested in additional shares of common stock unless stockholders opt out at least two days before the dividend payment date.

What are the potential tax attributes of FDUS's 2025 dividends?

The final tax attributes for FDUS's 2025 dividends may include ordinary taxable income, capital gains, qualified dividends, and return of capital, to be determined after the 2025 tax year closes.