Company Summary:

Investcorp Credit Management BDC, Inc. (ICMB) is a publicly traded Business Development Company (BDC) that provides customized financing solutions primarily to middle-market companies in the United States. The company's investment objective is to generate current income and, to a lesser extent, capital appreciation through its diversified portfolio of debt and equity investments.

Investcorp Credit Management BDC (ICMB) has recently seen its earnings fall well short of its dividend, casting doubt on its viability as a high-yield investment. In late 2024 and early 2025, the company’s net investment income (NII) dropped dramatically while the quarterly payout held steady at 12 cents per share. For example, ICMB earned only about 6 cents per share in NII during the quarter ended December 31, 2024 – down from 16 cents in the prior quarter. The most recent results show this gap widening in Q1 2025 (quarter ended March 31, 2025. We now see earnings covered less than half of the dividend in early 2025, implying a quarterly payout ratio well above 200%. Even on a trailing twelve-month basis, ICMB’s dividends have exceeded its profits (the dividend payout ratio is around 115–116% lately. Such imbalance has driven ICMB’s dividend yield to extremely high levels – roughly 15% annualized at the recent share price – which is often a warning sign that the market anticipates a dividend cut or finds the payout unsustainable.

Due to this poor earnings coverage, ICMB is in our estimation no longer viewed as a reliable dividend investment and has been rotated out of the Fly High Investing Portfolio.

Sources:

• Investcorp Credit Management BDC – Q1 2025 and Q4 2024 Financial Results (SEC filings/press releases) nasdaq.com 

• Investing.com analysis of ICMB’s Q1 2025 presentation investing.com

• FullRatio dividend sustainability metrics for ICMB fullratio.com

• Historical dividend announcements and company reports (2023–2024) stocktitan.net

URLs:

Investcorp Credit Management BDC, Inc. Website

Summary:

Investcorp Credit Management BDC, Inc. operates as a Business Development Company focusing on debt and equity investments in middle-market companies.

Reminder: past performance is not indicative of how an investment will perform in the future, before making any investment decisions based on this information, and/or the information contained on the website, refer to the TERMS OF SERVICES.

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