Monroe Capital Corporation Announces First Quarter Distribution of $0.25 Per Share
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Insights
The declaration of a $0.25 per share distribution by Monroe Capital Corporation represents a tangible return on investment for shareholders and has the potential to influence the company's stock performance. From a financial perspective, the distribution amount is a critical factor in the dividend yield calculation, which is a key indicator used by investors to assess the attractiveness of a stock in terms of income generation. Shareholders who participate in the dividend reinvestment plan (DRIP) are essentially compounding their investment, which could be beneficial in the long run as it allows for the acquisition of additional shares without transaction costs.
It's important to analyze the sustainability of such distributions by reviewing the company's payout ratio, which is the proportion of earnings paid out as dividends to shareholders. A payout ratio that is too high may not be sustainable in the long term, whereas a lower ratio could indicate that the company is reinvesting more of its profits into growth opportunities. Additionally, the timing of the distribution close to the record date might influence short-term trading activity as investors position themselves to qualify for the dividend.
The tax implications of the distribution are significant for shareholders, especially considering the choice between cash distributions and reinvestment through the DRIP. The tax treatment of the distribution will affect the after-tax return for investors and it is essential for them to understand the specific tax characteristics that will be reported on Form 1099. Depending on the classification of the distribution, which could be qualified dividends, ordinary income, or a return of capital, the tax rate applied to the distribution may vary.
Investors should be aware of the potential tax advantages or obligations that come with their choice of cash versus reinvestment. For example, reinvested dividends may not be subject to immediate taxation but will adjust the cost basis of the investment, potentially affecting capital gains taxes upon the sale of the shares. It is crucial for investors to consult with tax professionals to understand the implications fully and make informed decisions based on their individual tax situations.
CHICAGO, March 05, 2024 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (the “Company”) (NASDAQ: MRCC) announced today that its Board of Directors has declared a distribution of
About Monroe Capital Corporation
Monroe Capital Corporation is a publicly-traded specialty finance company that principally invests in senior, unitranche and junior secured debt and, to a lesser extent, unsecured debt and equity investments in middle-market companies. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. The Company’s investment activities are managed by its investment adviser, Monroe Capital BDC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and an affiliate of Monroe Capital LLC. To learn more about Monroe Capital Corporation, visit www.monroebdc.com.
About Monroe Capital
Monroe Capital LLC (“Monroe”) is a premier boutique asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains 10 offices throughout the United States and Asia.
Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2023 Lower Mid-Market Lender of the Decade, 2022 Lower Mid-Market Lender of the Year, 2022 CLO Manager of the Year, Americas; Inc.’s 2023 Founder-Friendly Investors List; Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the 2022 Best CLO Manager of the Year; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.
Forward-Looking Statements
This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and the Company undertakes no obligation to update any such statement now or in the future.
SOURCE: Monroe Capital Corporation
| Investor Contact: | Mick Solimene |
| Chief Investment Officer and Chief Financial Officer | |
| Monroe Capital Corporation | |
| (312) 598-8401 | |
| Email: msolimene@monroecap.com | |
| Media Contact: | Daniel Abramson |
| BackBay Communications | |
| (857) 305-8441 | |
| Email: daniel.abramson@backbaycommunications.com |
FAQ
What distribution has Monroe Capital Corporation (MRCC) declared for the first quarter of 2024?
When is the distribution payable to stockholders of Monroe Capital Corporation (MRCC)?
Does Monroe Capital Corporation (MRCC) have a dividend reinvestment plan?
How are distributions handled for stockholders of Monroe Capital Corporation (MRCC) under the dividend reinvestment plan?
How will the tax characteristics of the distribution be reported to stockholders of Monroe Capital Corporation (MRCC)?
