Dividend Watch: 2 BDCs To Avoid
With recession fears rising, BDCs like CION and GECC may face dividend cuts due to economic downturns and potential interest rate declines. CION Investment Corp.'s fundamentals have weakened, with declining net investment income and NAV, raising concerns about its ability to maintain dividends. Great Elm Capital Corp. has shown portfolio growth but faces high leverage and recent income declines, making its dividend sustainability uncertain.
CION Investment: Dividend Cut Likely Despite Strong Fundamentals
CION Investment Corporation's fundamentals are strong, but weakened dividend coverage and increased non-accruals justify a hold rating, leaning closer to a sell. The BDC's price has fallen by 18% over the last year, offering a high dividend yield of 15.8% but raising sustainability concerns. CION's portfolio is diverse, prioritizing first lien debt, and non-accruals have decreased, but growing PIK interest indicates signs of distress.
CION Investment Corporation (CION) Stock Jumps 7.6%: Will It Continue to Soar?
CION Investment Corporation (CION) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
Best Income Stocks to Buy for March 21st
CION, PFLT and FHB made it to the Zacks Rank #1 (Strong Buy) income stocks list on March 21, 2025.
All You Need to Know About CION Investment Corporation (CION) Rating Upgrade to Strong Buy
CION Investment Corporation (CION) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Best Income Stocks to Buy for March 19th
CION, PSTL and THFF made it to the Zacks Rank #1 (Strong Buy) income stocks list on March 19, 2025.
CION Investment: A Dividend Cut Is Likely, But I Remain Long
CION Investment has recently issued its Q4, 2024 report. The NII per share has declined to a level, where the dividend is no longer covered. This has also provided a fruitful environment for the bears to speak about PIK and insufficient cash generation to accommodate the dividend.
CION Investment: Credit Quality Concerns & Economic Uncertainty Outweigh The 13% Yield
CION Investment Corp faces financial challenges, particularly with borrowers like David's Bridal, impacting their top and bottom lines and raising concerns about credit quality. Despite a solid dividend coverage and share repurchases, economic volatility and recession risks warrant caution for investors seeking high yields. The company's net investment income and NAV have declined, with leverage increasing, although their focus on first-lien loans and portfolio growth offers some positives.
CION Investment Corporation (CION) Q4 2024 Earnings Call Transcript
CION Investment Corporation (NYSE:CION ) Q4 2024 Earnings Conference Call March 13, 2025 11:00 AM ET Company Participants Charles Arestia - Managing Director and Head, Investor Relations Michael Reisner - Co-Founder and Co-Chief Executive Officer Gregg Bresner - President and Chief Investment Officer Keith Franz - Managing Director and Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Securities Justin Marca - Lucid Capital Markets Operator Greetings and welcome to the CION Investment Corporation Q4 and Year-End 2024 Earnings Call. At this time, all participants are in a listen-only mode.
CION Investment Corporation (CION) Surpasses Q4 Earnings and Revenue Estimates
CION Investment Corporation (CION) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.40 per share a year ago.
CION Investment Corporation: Disappointing Growth And Investment Activity (Rating Downgrade)
I am downgrading CION Investment Corporation to a hold due to suppressed growth in a high-interest rate environment and a slightly weakened dividend coverage. CION's portfolio structure is solid, but its NAV has shown no meaningful growth, attributed to net losses, a growing non-accrual rate, and reduced new investments. Despite a high 13% dividend yield, the non-accrual rate has increased to 1.85%, and earnings cover the distribution at a slightly weakened rate of 111%.
I'm Not Married To CION Investment
CION Investment Corporation is downgraded to a hold due to financial pressure from smaller borrowers and expected volatility in the coming quarters. The business development company's Q3 performance showed declines in net investment and total investment income, with significant unrealized losses impacting NAV. Despite headwinds, CION's balance sheet remains strong with well-staggered debt, active share repurchases, and a safe base dividend.
