FS KKR Capital Cuts Dividend 31% to $0.48, Investment Income Down 19.5%
FS KKR Capital cut its quarterly dividend by 31% to $0.48 from $0.70, effective Q1 2026 with record date March 18 and payment on April 2. 2025 investment income declined 19.5% to $654 million and fell 11.7% to $1.5 billion, prompting management to stabilize underperformers and increase senior secured originations.
1. Dividend Reduction Details
FS KKR Capital Corp. announced a 31% cut to its quarterly dividend, reducing the payout to $0.48 per share from $0.70, beginning in Q1 2026. The record date for shareholders is March 18, with payment scheduled on April 2.
2. 2025 Investment Income Performance
For full-year 2025, the company reported net investment income of $654 million, a 19.5% decline from $813 million, while total investment income fell 11.7% to $1.5 billion. These declines were driven by challenges in specific portfolio investments.
3. Management Outlook and Strategy
Chairman and CEO Michael Forman stated the investment team will work to stabilize underperforming assets and focus on new originations in first lien senior secured structures. The goal is to diversify the portfolio and strengthen returns throughout 2026.