FSK vs OXSQ: Which BDC is the Better Dividend Buy?
A side-by-side comparison of FS KKR Capital Corp. II (FSK) and Oxford Square Capital Corp. (OXSQ) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
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FSK vs OXSQ: Key Metrics Head-to-Head
| Metric | FSK | OXSQ | Edge |
|---|---|---|---|
| Dividend Yield | 21.04% | 28.77% | OXSQ |
| Premium / Discount to NAV | -11.14% | -39.17% | FSK |
| Market Capitalization | $2.6B | $0.08B | FSK |
| Trailing Stock Price | $10.93 | $1.46 | — |
| Net Asset Value (NAV) | $12.3 | $2.4 | — |
| Price vs NAV (Valuation) | Discount | Discount | FSK |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.18x | 1.35x | FSK |
About FSK — FS KKR Capital Corp. II
FS KKR Capital Corp. II is one of the largest externally managed BDCs in the United States, formed by the merger of four non-traded FS Investment Corporation vehicles. FSK is co-managed by FS Investments and KKR Credit, providing senior secured debt, subordinated debt, and selected equity investments to U.S. middle-market companies. The portfolio is diversified across roughly 150 issuers and emphasizes first lien senior secured loans as the core credit exposure.
About OXSQ — Oxford Square Capital Corp.
Oxford Square Capital Corp. is an externally managed BDC that invests primarily in senior secured loans and CLO equity and debt tranches. OXSQ is unusual among BDCs in its significant allocation to CLO securities, which can introduce correlation risk with broader credit cycles. The company is externally managed by Oxford Square Management and targets a high current yield through its income-focused portfolio strategy.
How to Choose Between FSK and OXSQ
When comparing two Business Development Companies, the right choice depends on your income objective:
- Dividend yield matters most for immediate income — the higher yielder wins on cash flow, but make sure it's covered by investment income.
- NAV premium/discount matters for valuation — a discount to NAV implies you're buying assets below their accounting value, a premium implies the market expects above-average growth.
- Market cap reflects liquidity and scale — larger BDCs typically have lower borrowing costs and better portfolio diversification.
- Leverage cuts both ways — it amplifies dividend yield but increases sensitivity to credit defaults and interest rate moves.
Both FSK and OXSQ are Regulated Investment Company (RIC)-structured BDCs required to distribute at least 90% of taxable income to shareholders, which is what produces their above-average dividend yields. Use the comparison table above as a starting point, then read each full profile before making an investment decision.
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Not Investment Advice: This comparison is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor. Read our full Editorial Policy and Terms of Service.