Great Elm Capital Declares $0.30 Quarterly Dividend, 19.2% Annualized Yield
Great Elm Capital Corp. (NASDAQ: GECC), a business development company, approved a $0.30 per share cash dividend for the first quarter of 2026. The distribution represents a 19.2% annualized yield based on the company's February 27, 2026 closing price of $6.26.
Great Elm Capital Corp. (NASDAQ: GECC), a business development company focused on private credit investments, declared a quarterly cash dividend of $0.30 per share for the first quarter of 2026. The distribution equates to a 19.2% annualized yield on the company's closing market price of $6.26 on February 27, 2026. Read more dividend announcements.
The dividend will be paid on March 31, 2026 to shareholders of record as of March 16, 2026. The distribution represents a 14.9% annualized yield on the company's December 31, 2025 net asset value of $8.07 per share.
| Dividend Details | Information |
|---|---|
| Amount | $0.30 per share |
| Record Date | March 16, 2026 |
| Payment Date | March 31, 2026 |
| Frequency | Quarterly |
Investment Adviser Waives Incentive Fees
Great Elm Capital Management, the company's external investment adviser, waived all accrued incentive fees through March 31, 2026. As of December 31, 2025, approximately $2.3 million, or $0.16 per share, of accrued incentive fees were recorded on the company's balance sheet.
Adjusted for the incentive fee waiver, the quarterly distribution equates to a 14.6% annualized dividend yield on the company's pro forma net asset value as of December 31, 2025.
Fourth Quarter Financial Performance
Great Elm Capital reported net investment income of $4.4 million, or $0.31 per share, for the quarter ended December 31, 2025, compared to $2.4 million, or $0.20 per share, in the prior quarter. The 50% quarter-over-quarter growth was primarily driven by increased cash income from investments.
Total investment income for the quarter was $12.6 million, up from $10.6 million in the September 2025 quarter. The company received $4.3 million in cash distributions from the CLO Formation JV during the quarter, compared to $1.5 million in the prior quarter. Through March 2, 2026, the company received an additional $2.5 million in distributions from the joint venture.
Net assets stood at $112.9 million, or $8.07 per share, as of December 31, 2025, down from $140.1 million, or $10.01 per share, as of September 30, 2025. Net realized and unrealized losses for the quarter totaled approximately $26.4 million, or $1.88 per share, with over 50% comprised of unrealized losses.
Capital Management Actions
The company called $20 million of its GECCO notes for redemption on March 31, 2026. As of December 31, 2025, total debt outstanding was $194.4 million across four series of senior notes with rates ranging from 5.875% to 8.50% and maturities from June 2026 to December 2030.
Great Elm Capital's Board of Directors authorized a stock repurchase program in the fourth quarter of 2025, allowing the company to repurchase up to $10 million of its outstanding common shares. The authorization represents approximately 11% of the company's market capitalization as of February 27, 2026.
Portfolio Activity
During the quarter ended December 31, 2025, the company monetized 46 investments, in part or in full, for approximately $49.1 million at a weighted average current yield of 9.3%. Mandatory debt repayments and redemptions totaled $18.2 million at a weighted average current yield of 6.9%.
The company reduced exposure to software businesses, which represented approximately 6% of total investments at year end and less than 4% as of February 27, 2026. The largest software-related position represented less than 1% of the portfolio.
Leadership Change
The Board of Directors appointed Jason Reese as Executive Chairman effective March 3, 2026, succeeding Matthew Drapkin. Reese currently serves as Chairman and CEO of Great Elm Group, Inc. (NASDAQ: GEG), the parent of the company's investment adviser.