Oxford Lane Capital Delivers Hefty Dividend Amid NAV Pressures

• Close price: 15.05 USD (+2.8%)
• Latest NAV range (November 30, 2025): 16.34–16.64 USD
• Discount to NAV average: roughly 8–9%
• Monthly distribution: 0.40 USD per share
• Implied annual yield: about 31.9%

Technical snapshot

At the start of the week, the chart presents a cautiously constructive picture. The stock has moved above the 14.65 USD support area and is approaching resistance near 15.20 USD.

In the most recent trading session, around 1.56 million shares changed hands, indicating ongoing interest. The chart remains influenced by the 1-for-5 reverse stock split implemented on September 8, 2025, which reduced share count but left the fund’s high-yield profile intact.

A seven-session uptrend underscores the near-term positive impulse. Technical commentary, including from StockInvest, signals a buy posture as the price breaks out of a prior downward trend.

NAV discount and underlying risk

The discount picture remains a focal point. NAV estimates show a notable erosion in portfolio values from October to November 2025:

• NAV estimate for November 30, 2025: 16.34–16.64 USD
• NAV estimate for October 31, 2025: 18.21–18.51 USD
• Current price: 15.05 USD
• Discount to NAV average: about 8.7%

This places the stock clearly below the estimated substance value of the CLO Equity portfolio. The market appears to price in elevated credit risk while still applying a discount to a theoretical liquidation value. The fall in the NAV range from roughly 18 down to 16 USD indicates growing pressure on the fund’s asset base, highlighting the volatility typical of CLO-equity holdings.

Should investors sell immediately? Or is it worth buying Oxford Lane Capital?

Dividend policy and earnings capacity

A central driver for many investors remains the monthly payout. Following the reverse split, Oxford Lane has continued its dividend policy, yielding about 31.9% on an annualized basis at the current price.

For the first quarter of 2026, the following distributions are announced:

• Monthly dividend: 0.40 USD per share
• Frequency: monthly (January, February, March)
• Estimated annual payout: 4.80 USD per share

The next ex-dividend date is expected in mid-January. A key question for the stock’s trajectory is whether the fund can sustain 0.40 USD per month from Net Investment Income (NII without further NAV deterioration. The recent narrowing of asset values in Q4 2025 makes this goal more challenging.

Market mood and outlook

Recent price action and technical signals point to improved sentiment among yield-focused retail investors. Yet the contraction in NAV estimates serves as a cautionary note and reflects the typical volatility associated with CLO-equity investments.

The immediate question centers on whether the price can remain above the 15.00 USD psychological level. If it holds there and the NAV updates suggest stabilization near current estimates, the upside could be reinforced and the risk–yield balance better defined.