FSCO: Still Far Away From A Durable Income Buy
FS Credit Opportunities Corp. (FSCO) is currently facing challenges with a significant NAV discount and weak dividend coverage. Despite a high yield of 13.9%, the risks associated with payment-in-kind (PIK) raises are concerning. Investors are advised to approach FSCO cautiously as it is not yet a durable income buy.
- ▪FSCO has a 30% NAV discount and offers a yield of 13.9%.
- ▪The company is experiencing weak dividend coverage.
- ▪There is a high risk of payment-in-kind (PIK) raises.
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