Monroe Capital Slashes Quarterly Dividend 50% to $0.09 Per Share
Monroe Capital Corporation, a business development company, declared a first quarter dividend of $0.09 per share, down from $0.18 paid in the previous quarter. The board cited an effort to align distributions with net investment income.
Monroe Capital Corporation (NASDAQ: MRCC), a business development company focused on middle-market lending, declared a first quarter 2026 dividend of $0.09 per share, a 50% reduction from the $0.18 per share paid on December 31, 2025. The dividend is payable March 31, 2026 to shareholders of record as of March 16, 2026. Read more dividend announcements.
The board said the dividend adjustment aims to better align distributions with the company's net investment income as a standalone entity, citing in part the decrease in base interest rates. The Chicago-based lender reported fourth quarter 2025 net investment income of $0.10 per share, well below the $0.18 distribution paid during that period.
| Dividend Details | Amount |
|---|---|
| Amount Per Share | $0.09 |
| Frequency | Quarterly |
| Record Date | March 16, 2026 |
| Ex-Dividend Date | Not disclosed |
| Payment Date | March 31, 2026 |
| Previous Dividend | $0.18 |
Financial Performance
Monroe Capital reported net investment income of $2.2 million, or $0.10 per share, for the fourth quarter of 2025, compared with full-year 2025 net investment income of $11.4 million, or $0.53 per share. Adjusted net investment income for the quarter was $2.3 million, or $0.11 per share.
Net asset value stood at $166.5 million, or $7.68 per share, as of December 31, 2025. The company reported total investments at fair value of $334.9 million at year-end, down from $457.0 million a year earlier.
Pending Merger
Chief Executive Theodore Koenig said the dividend adjustment comes as Monroe Capital prepares for a proposed merger with Horizon Technology Finance Corporation. The company has scheduled a special shareholder meeting for March 13, 2026 to vote on the transaction, which is expected to close near the end of the first quarter or early in the second quarter of 2026.
Monroe Capital operates a dividend reinvestment plan under which shareholders automatically receive additional shares unless they elect cash distributions prior to the record date. The plan has been in effect since October 2012.