FS KKR Capital Corp, known by the ticker symbol FSK, is a business development company operating in the financial services business sector in Pennsylvania. This is my first report on FSK for this Viital portfolio or any of my previous six dog of the week portfolios.

Founded in 2008, it is headquartered in Philadelphia PA, which is also the HQ of FS Investments; FS Investments co-manages FS KKR with KKR & Co., Inc. (KKR).

FSK's portfolio is comprised primarily of investments in senior secured loans and second lien secured loans of private middle market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies.

The fund seeks to invest in firms with annual revenue between $10 million to $2.5 billion. It focuses on providing customized one-stop credit solutions to private upper middle market companies with annual EBITDA of $50 million to $100 million at the time of investment. It seeks to exit from securities by selling them in a privately negotiated over- the- counter market. For any investments that are not able to be sold within the secondary market, the firm seeks to exit such investments through repayment, an initial public offering of equity securities, merger, sale or recapitalization.

Three key data points gauge any dividend equity or fund such as FS KKR Capital Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

FSK Price

FS KKR’s price per share was $22.13 as of Friday's market close. One year ago its price was $25. Therefore, FS KKR’s share price fell $2.87 or about 11.5% in the past year.

If FS KKR’s stock trades in the range of $9.00 to $30.00 this next year, its recent $22.13 share price might rise by $1.37 to reach $23.50 by April 25, 2023. My $1.37 upside estimate is in keeping with the median of price upsides gauged by eight analysts tracking FSK for their brokerages.

FSK Dividends

FS KKR’s most recently declared quarterly dividend of $0.63 was paid April 4th to shareholders on record as of March 15th.

FS KKR paid its first annual dividend January 31, 2014. The dividend has been variable between $0.30 and $0.89 over the past 8 years  and is currently estimated to deliver a 11.39% annual yield per Friday’s $22.13 price.

FSK Returns

Adding a $2.52 FSK annual dividend to the estimated one-year price upside of $1.37 shows a $3.89 potential gross gain, per share, to be reduced by any costs to trade FSK shares.

At yesterday's $22.13 closing price per share, a little under $1000 would buy 45 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $3.89 gross gain estimate per share results in a net gain of $3.67 X45 shares = $165.15 for a 16.52% net gain on a $995.85 investment.

So it is that FS KKR Capital Corp (FSK) shows a possible 24.77% net gain including a 6.39% forward looking dividend yield.

Over the next year at this time our $1000 investment in FSK could generate $113.90 in cash dividends alone. Note that a single share of FSK stock bought at yesterday's $22.13 price is over five times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the right time to buy FSK shares based on their declared 2022 dividend. The forthcoming dividend from $1K invested is currently 5.15 times greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend!

All of the estimates above are speculation based on the past history of FS KKR Capital Corp (FSK). Only time and money invested in this stock will determine its market value.