Should I Buy Oxford Square Capital (OXSQ)? Finance YouTuber Analysis

The YouTuber suggests Oxford Square Capital (OXSQ) as a monthly dividend stock with a high yield, noting its outperformance against the market this year. The company benefits from the current interest rate environment, leading to rising investment income and net asset value. However, a concern is raised about the gap between its portfolio yield and dividend yield.

“Oxford has a similar business model to Gladstone, though it doesn't take quite the equity position that we saw with Gain. Instead, its portfolio is almost exclusively those loans to small and midsize companies.”

The analyst suggests OXSQ for its 14.1% dividend yield and the highest return on equity in the group at 19.3%. This strong ROE is expected to support both the dividend and the stock price, despite a slightly negative yield spread.

“oxford Square Capital ticker oxsq pays the same yield at 14.1% but has produced a higher return on equity in fact the highest of the group at 19.3%”