Is FS KKR Capital's 12.2% Yield At Risk?

Business Development Companies ("BDCs") will begin reporting results next week and this article discusses some of the items that investors should be watching.

Source: SEC Filings and www.bdcbuzz.com
As mentioned in previous articles, FSIC was my smallest position due to selling shares in anticipation of the dividend reduction announced in August 2017. I sold my remaining shares after the company reported Q2 2018 results due to expected additional credit issues including some of the ones discussed in this article.

Source: Yahoo Finance
As mentioned in previous articles, BDCs are priced based on expected returns to shareholders including regular and special dividends as well as realized capital gains and growing book values. BDCs with higher yields usually implies higher risk and/or expected credit issues driving dividend cuts and lower book values.
I am expecting a handful of BDCs to announce dividend reductions in 2019.

Source: SEC Filings and www.bdcbuzz.com
On December 19, 2018, a partnership between FS Investments and KKR Credit Advisors announced the closing of the merger between FS Investment Corp (FSIC) and Corporate Capital Trust, Inc. (CCT), creating the second-largest publicly traded BDC. With the closing of the merger, FS Investment Corporation has been renamed FS KKR Capital Corp. (FSK) and began trading on the New York Stock Exchange under the ticker symbol "FSK" on December 20, 2018.
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