FS KKR Capital Corp's stock plummeted 17.98% during intraday trading on Thursday, marking a significant decline for the business development company.
The sharp drop came after the company announced it was lowering its quarterly distribution to $0.48 per share for the fourth quarter, down from $0.70 per share in the previous quarter. This substantial reduction in shareholder payout represents a 31.4% decrease and has negatively impacted investor sentiment toward the stock.
The distribution cut suggests potential challenges in the company's cash flow or investment performance, leading to immediate selling pressure as income-focused investors reassessed the stock's attractiveness for dividend yield.
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