FSK vs NMFC: Which BDC is the Better Dividend Buy?
A side-by-side comparison of FS KKR Capital Corp. II (FSK) and New Mountain Finance Corporation (NMFC) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
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As of 09/04/2026: FSK 18.5% yield vs NMFC 16.2% — NAV 1.1% vs -37.1%, leverage 1.18x vs 1.19x. Side-by-side table below.
FSK vs NMFC: Key Metrics Head-to-Head
| Metric | FSK | NMFC | Edge |
|---|---|---|---|
| Dividend Yield | 18.49% | 16.18% | FSK |
| Premium / Discount to NAV | 1.14% | -37.14% | FSK |
| Market Capitalization | $2.6B | $0.48B | FSK |
| Trailing Stock Price | $12.44 | $7.48 | — |
| Net Asset Value (NAV) | $12.3 | $11.9 | — |
| Price vs NAV (Valuation) | Premium | Discount | FSK |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.18x | 1.19x | 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 NMFC — New Mountain Finance Corporation
New Mountain Finance Corporation is an externally managed BDC advised by New Mountain Capital, a New York-based investment firm. NMFC provides senior secured debt, subordinated debt, and equity co-investments to middle-market companies, with a focus on defensive sectors such as healthcare, information technology, and business services. The BDC emphasizes downside protection through structuring and conservative leverage on portfolio holdings.
How to Choose Between FSK and NMFC
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 NMFC 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.