Vilas Abraham: Got it. Okay. And then just maybe on the dividend. Just how are you guys thinking about the base versus the supplemental dividend? And what would it take to get a bump up in the base at some point?
Dwayne Hyzak: Sure. So I think we’ve been trying to be fairly consistent for the last year or so in terms of setting our policy. And I’d say that we’re not planning on making changes there. So our long-term goals, when we say long-term goals, three to five years, not kind of two to three quarters, is to deliver a consistent, recurring and growing monthly dividend. Historically, it’s been kind of 3% plus or minus. I think in this environment, most recently, we’ve been above that, closer to 5%. And I think near term, we would expect that to continue to be the case. On the supplemental, that’s going to be directly attributable to how much distributable net investment income, or DNII, are we able to generate in a quarter in relation to the monthly.
So our dividend for March is based upon the fourth quarter’s results were as I think I may have touched on in the prepared comments, but we exceeded the monthly dividend by a very wide margin. I think it was $0.37 off the top of my head, and we paid out about half of that, a little bit less than half of that in the supplemental. So that’s the approach we’ve taken in the last couple of quarters. I think we’ll continue to take that conservative approach. And the reason we’re not paying out more is though, even though we feel really good about the portfolio and it’s performing at a super, super high level, there is additional risk in the economy, and we think it’s prudent to reserve some of that just in case things take a step back. We would not think it would be prudent to be paying out 100% of your dividend, 100% of your earnings and dividends today because there’s a number of factors that would say there’s risk in the economy that would support not doing that.
So that’s why you see us taking a fairly conservative approach in how we’re paying that supplemental dividend.
Vilas Abraham: Got it. Makes sense. And maybe one last quick one. You mentioned that six or seven companies contributed materially to the appreciation this quarter. Were those in any specific sector or was that kind of cross sector?
Dwayne Hyzak: When you say sector, you mean industry or you mean by investment strategy?
Vilas Abraham: Yeah, yeah, industry. Yeah.
Dwayne Hyzak: Yeah, I would not say that they’re specific to an individual industry or sector. I think if you look at it, our portfolio in the lower middle market continues to be very, very diverse. And when you look at the top contributors there, I’d say that they are across a wide range of different industries.
Vilas Abraham: Got it. Thank you.
Dwayne Hyzak: Thank you.
Operator: Our next question comes from Eric Zwick with Hovde Group. Please proceed with your question.
Eric Zwick: Thank you. Good morning. There have been a number of comments this morning with regard to credit quality and still some excess risk in the economy and the outlook. And I’m curious, from what you track and the data that you have. Are you seeing any early signs of deterioration or concerns about credit quality, either in heightened amendment requests or internal watch list growing or any companies that are maybe getting close to the covenant which is anything along those lines at this point?
