Eagle Point Credit Preferred Shares: Assessing Dividend Security and Portfolio Health
17.02.2026 - 14:42:03
Eagle Point Credit Company has released its financial results for the fourth quarter and the full 2025 fiscal year. The report provides investors with key insights into the stability of its portfolio and, crucially, the security of its preferred share dividends.
The company has completed its annual portfolio review for the year ended December 31, 2025. A central figure for shareholders is the estimated net asset value (NAV), which is projected to be in a range of $5.65 to $5.75 per common share. This NAV serves as a critical measure of the underlying value supporting the company’s capital structure.
Of particular importance to income-focused investors is the asset coverage ratio for preferred shares. Eagle Point Credit reported this ratio at 239%, a level that substantially exceeds the minimum requirements set by the Investment Company Act of 1940. This robust coverage provides a significant buffer designed to protect dividend payments.
Regarding direct shareholder returns, the company confirmed the monthly dividend for its 6.75% Series D Cumulative Preferred Shares. The payment is set at $0.140625 per share for February. Shareholders of record as of the ex-dividend date, February 9, 2026, will receive this distribution on February 27, 2026.
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Portfolio Strategy and Income Sustainability
The disclosed figures reflect a year of active management focused on the collateralized loan obligation (CLO) market. Management’s primary objective has been to secure and maximize recurring cash flows from these investments. The sustained generation of this income is fundamental to supporting the fund’s monthly distributions across its various series of preferred shares.
The substantial asset coverage ratio of 239% underscores the company’s emphasis on maintaining a safety margin for its fixed-income obligations. This strategic cushion is intended to ensure the continuity of payouts even during periods of market volatility, a key characteristic of this closed-end fund’s capital framework.
Further details on portfolio performance and cash flow developments are scheduled to be discussed by management in a conference call later today. This presentation will offer investors a deeper analysis of the results and the fund’s ongoing strategy.
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