Tue. Nov 12th, 2019

Newtek raises 2019 dividend forecast to an implied yield of nearly 10%

1 min read

Newtek Business Services Corp.

NEWT, +0.74%

said Wednesday it will pay a third-quarter dividend of 58 cents a share, which is up 26% from the second-quarter dividend of 46 cents a share. The business development company said the new dividend will be payable Sept. 30 to shareholders of record on Sept. 20. Newtek raised its 2019 annual dividend payout forecast to $2.15 a share from a previous forecast of $1.95 a share. Based on Tuesday’s stock closing price of $21.71, the new forecast implies a dividend yield of 9.9%, compared with the implied dividend yield for the S&P 500

SPX, -0.79%

of 2.01%. The company said the objective of its dividend policy is to pay out 90% to 100% of its annual taxable income, and is determined annually. “Given the volatility in the markets, we are pleased that Newtek has been able to maintain its upward momentum in its business as a result of its unique and diversified business model,” said Chief Executive Barry Sloane. The stock, which was indicated up 2.0% in premarket trading, has rallied 24.5% year to date while the S&P 500 has gained 15.7%.

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