Question · Q3 2025
Ethan Kaye inquired about the reasons for softer dividend income quarter-over-quarter and the sensitivity of Ivy Hill's dividend to interest rate changes.
Answer
Jim Miller (President) confirmed that non-recurring dividends from the prior quarter and exits of preferred yield/equity investments were the main factors for softer dividend income, noting that many preferred investments that paid off were PIK-ing, aiding PIK collections. Kort Schnabel (CEO) stated Ivy Hill's dividend is very sustainable, similar to ARCC's, due to its current out-earning of the dividend (107% coverage in Q3) and $130 million in retained earnings.