FS KKR (FSK) Falls Sharply on 31% Dividend Cut

We recently published 10 Stocks Investors Have Ditched. FS KKR Capital Corp. (NYSE:FSK) was one of the worst performers on Thursday.

FS KKR Capital snapped a two-day rally on Thursday, slashing 15.24 percent to finish at $11.29 apiece, as investor sentiment was dampened by a 31-percent cut in its quarterly dividends beginning in the first quarter of the year.

In an updated report, FS KKR Capital Corp. (NYSE:FSK) said that it would pay a $0.48 per share dividend to its shareholders on record as of March 18, 2026, markedly lower than the usual $0.70 dividend distributed per quarter.

The dividends are scheduled for payment on April 2.

This followed dismal earnings performance last year, with net investment income falling by 19.5 percent to $654 million from $813 million. Total investment income also declined by 11.7 percent to $1.5 billion from $1.7 billion.

“As we conclude 2025 and begin looking forward to 2026, we acknowledge specific challenges associated with a few investments that impacted our results during the second and fourth quarters of the year,” said FS KKR Capital Corp. (NYSE:FSK) Chairman and CEO Michael Forman.

“Looking ahead to 2026, our investment team will be working diligently to stabilize these investments while continuing to focus on high-quality new originations, primarily in first lien senior secured structures, as we continue to diversify our investment portfolio,” he added.

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