Externalization proposal is off the table, according to the company’s Q3-2017 earnings release. Positive interest rate sensitivity single biggest reason to buy the stock. The company has covered its dividend with NII and DNOI in the last nine quarters, on average, suggesting that the BDC can at least maintain its dividend run-rate. Shares are far from overpriced, selling for a reasonable run-rate NII multiple. An investment in the stock yields 9.25 percent.
Hercules Capital, Inc. (HTGC) is a Strong Buy, in my opinion. The tech-focused business development company reported solid third quarter earnings and continues to cover its dividend with distributable net operating income. Further, the BDC has positive interest rate sensitivity, which could potentially result in a dividend hike. Lastly, there is no longer uncertainty regarding the company's initial proposal to change its management and compensation structure.
Source: Seeking Alpha
Related Articles:
- 4 Higher-Yielding, Low Debt Stocks With A Tiny Payout Ratio
- 3 Stocks Increasing Dividends Like A Champion
- The Next Great Company
- 5 Stocks With a Sustainable Dividend
- Dividend Investing + Value Investing = Superior Returns
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Billionaire Paul Singer has made a fortune shaking up tired businesses. And right now he has a new company in his crosshairs. In industry ci...
-
Utility stocks feature plenty of steady cash flows and high dividends. It doesn’t matter so much what the economy is doing as people still n...
-
To live off the passive income from stocks, one of the important things to pay attention to is the company’s distribution policy. Nowadays, ...
-
The problem is, finding high-quality dividend stocks isn't easy. That's because yield and risk tend to be correlated. In other words...
-
Usually, when a dividend yield is around 10%, it's due to concerns about its sustainability. However, that's not the case with this ...
-
We're now three-fourths of the way through 2019, and it's certainly been an eventful year so far. Although the S&P 500 is up by ...
-
If you review past articles on Income Investors, you might spot a common theme: the best-performing stocks are often those of quiet, unassum...
-
Q3 earnings season is almost upon us, as the big banks are set to officially kick-off the season in mid-October. Many investors are keeping ...
-
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. UnitedHeal...
-
Not every high-yield stock is worth owning, a fact that income-focused investors often learn the hard way, via a dividend cut, when they fir...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.