A No-Brainer 9% Yielder

This company recently completed a capital raise. Net proceeds of ~$129 million will be used for portfolio investments and to grow NII. Its shares are selling for ~10.2x Q2-16 NII. An investment in the company yields ~9 percent. Expectedly, the emotionally-fueled sell-off afforded investors with a nice buying opportunity, and investors that bought when everyone else ran for the door, have made a nice profit so far: shares have risen ~15 percent since I recommended buying the business development company to income investors in May.

Triangle Capital Corp. (NYSE:TCAP) has produced some nice returns for those investors that bought the meltdown in May. The business development company has sold off sharply in May after Triangle Capital announced that it would slash its dividend by 17 percent from $0.54/share to $0.45/share on the back of lower expected debt investment yields. As a result, Triangle Capital's shares dropped like a rock.

Source: Seeking Alpha

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