Management planned to externalize management, which didn't sit well with investors. The stock crashed, and recovered only slightly after the company withdrew its proposal of a new investment advisor relationship. The shares have slumped since May. I have sold my shares earlier this year. However, I discuss three reasons why I am buying into the BDC again at today's prices. An investment in it yields 10.18 percent.
Hercules Capital, Inc. (HTGC) is an appealing income vehicle on the sell-off. The business development company has good dividend coverage stats, stable portfolio yields, and, most importantly, interest rate upside tied to an increase in the federal funds rate. I think the reward-to-risk ratio is appealing for income investors at today's price point.
Source: Seeking Alpha
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