Silver Spike Investment Corp. Declares Cash Dividend for First Quarter 2024
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Insights
The declaration of a cash dividend by Silver Spike Investment Corp. signals a positive cash flow and profitability status, which can be an attractive point for income-focused investors. The dividend yield, calculated as the annual dividends per share divided by the price per share, is a critical metric in evaluating the attractiveness of Silver Spike's stock as an income-generating investment. A $0.25 per share quarterly dividend suggests a $1.00 annual dividend, which investors will compare against the current stock price to assess yield.
Furthermore, the introduction of a Dividend Reinvestment Plan (DRIP) allows investors to compound their holdings by reinvesting dividends into additional shares. This can be beneficial for long-term growth as it reflects a reinvestment strategy that could potentially enhance the value of an investor's stake in the company over time, assuming the company's stock price appreciates.
The announcement of dividend payments can impact investor sentiment and the company's stock market performance. Historically, stocks that pay dividends are often considered less volatile and more stable, which might attract a different investor profile compared to non-dividend-paying stocks. The stability of Silver Spike's dividends, especially in the context of its sector and market trends, will be closely monitored by investors as an indicator of the company's financial health and managerial confidence in its cash-generating ability.
Additionally, the timing of the dividend declaration and the payment dates are essential for investors who follow the 'Dividend Capture' strategy, which involves purchasing a stock before the ex-dividend date and selling it after the dividend is paid to capture the dividend payout without a significant investment in the stock.
Dividend declarations can reflect broader economic conditions. In a stable or growing economy, companies may have more confidence in sharing profits with shareholders through dividends. Conversely, in a downturn, companies might reduce or suspend dividends to conserve cash. Silver Spike's ability to pay dividends could indicate its resilience to economic fluctuations and its position within the specialty finance industry.
Moreover, the DRIP's impact on share price should be considered. While reinvestment of dividends increases the number of outstanding shares, which could dilute the share value, it also reflects shareholder confidence in the company's future prospects. This confidence can have a positive feedback loop on the company's stock performance, albeit this must be balanced against the potential dilutive effect.
NEW YORK, March 08, 2024 (GLOBE NEWSWIRE) -- Silver Spike Investment Corp. (“Silver Spike” or the “Company”) (NASDAQ: SSIC), a specialty finance company that has elected to be treated as a business development company, today announced that Silver Spike’s board of directors has declared a cash dividend of
The following are the key dates for the dividend:
| Record Date | March 20, 2024 |
| Payment Date | March 28, 2024 |
The Company 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 in accordance with the terms of the DRIP and the procedures of their broker or other financial intermediary will have their cash dividends automatically reinvested in additional shares of the Company’s common stock. A stockholder whose shares are held by a broker or other financial intermediary should contact their broker or other financial intermediary as soon as possible in order to determine the time by which the stockholder must take action in order to receive dividends in cash.
About Silver Spike Investment Corp.
Silver Spike is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Silver Spike’s investment objective is to maximize risk-adjusted returns on equity for its shareholders by investing primarily in direct loans to privately held middle-market companies, with a focus on cannabis companies and other companies in the health and wellness sector. Silver Spike is managed by Silver Spike Capital, LLC, an investment manager focused on the cannabis and alternative health and wellness industries. For more information, please visit ssic.silverspikecap.com.
Forward-Looking Statements
Certain information contained herein may constitute “forward-looking statements” that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Company, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in the Company’s filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which the Company makes them. The Company does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
Contacts
Investors:
Bill Healy
bill@silverspikecap.com
212-905-4933
FAQ
What is the ticker symbol for Silver Spike Investment Corp.?
What is the dividend amount declared by Silver Spike Investment Corp. for the quarter ending March 31, 2024?
When is the Record Date for the dividend declared by Silver Spike Investment Corp.?
What is the Payment Date for the dividend declared by Silver Spike Investment Corp.?
Does Silver Spike Investment Corp. have a Dividend Reinvestment Plan (DRIP)?
What action should stockholders take if they want to receive dividends in cash from Silver Spike Investment Corp.?
