MENLO PARK, Calif. - Runway Growth Finance Corp. (NASDAQ:RWAY), a provider of capital solutions to late- and growth-stage companies, has announced a regular cash distribution of $0.40 per share for the fourth quarter of 2024. The declaration date for this dividend is today, with a record date of November 18, 2024, and a payment date set for December 2, 2024.
The company's approach is to distribute nearly all of its available earnings quarterly, depending on its financial performance and condition, regulatory requirements, and other factors the Board of Directors may consider. Runway Growth's distributions are subject to the Board's discretion and adherence to maintaining its status as a regulated investment company for tax purposes.
Stockholders enrolled in the company's dividend reinvestment plan, unless they opt out, will automatically have their dividends reinvested into additional shares of Runway Growth's common stock.
Runway Growth operates as a closed-end investment fund and has chosen to be regulated as a business development company under the Investment Company Act of 1940. It is managed by Runway Growth Capital LLC, led by industry veteran David Spreng since its formation in 2015.
The company's press release includes forward-looking statements, which are subject to risks, uncertainties, and changes over time. These statements are not guarantees of future performance and may differ materially from actual results. Runway Growth does not commit to updating any forward-looking statements, which are applicable only as of the date of the press release.
This announcement is based on a press release statement from Runway Growth Finance Corp.
In other recent news, Runway Growth Finance Corp. has reported significant financial activities and board developments. The company has disclosed its Q3 investment activities, which included seven funded investments totaling $75.3 million, with significant investments in Snap! Mobile, Inc., Zinnia Corporate Holdings, LLC, and Elevate Services, Inc. In the same quarter, Runway Growth saw liquidity events including the full repayment of a $75.0 million senior secured term loan to CloudPay, Inc.
Additionally, Runway Growth Finance Corp. shared its Q2 2024 results, reporting total investment income of $34.2 million and net investment income of $14.6 million. A new $15 million stock repurchase program was approved, and a regular distribution of $0.40 per share was declared. The company also re-elected three members to the Board of Directors during its 2024 Annual Meeting of Stockholders, with RSM US LLP ratified as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
The company's loan portfolio is performing well, with all loans earning interest at or above floors, and total available liquidity stands at $249.8 million, according to analyst notes. These recent developments are significant for investors considering Runway Growth Finance Corp.
InvestingPro Insights
Runway Growth Finance Corp.'s recent dividend announcement aligns with its strong commitment to shareholder returns, as evidenced by InvestingPro data. The company boasts an impressive dividend yield of 18.56%, significantly higher than many of its peers in the financial sector. This high yield is supported by Runway Growth's consistent dividend growth, which has increased by 28.47% over the last twelve months.
InvestingPro Tips highlight that Runway Growth has raised its dividend for 3 consecutive years, underscoring the company's dedication to returning value to shareholders. This trend is particularly noteworthy given that the company is trading near its 52-week low, potentially presenting an attractive entry point for income-focused investors.
The company's financial health appears robust, with a price-to-earnings ratio of 13.9, which drops to an even more attractive 5.7 when adjusted for the last twelve months. This suggests that Runway Growth's stock may be undervalued relative to its earnings potential.
It's worth noting that InvestingPro offers 7 additional tips for Runway Growth Finance Corp., providing investors with a more comprehensive analysis of the company's financial position and future prospects. These insights can be particularly valuable for those considering the stock in light of its recent dividend announcement and current market position.
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