Why I Doubled Down Again On This Top-Shelf 9.9%-Yielding BDC

This company is a top-shelf BDC with strong performance results over the last several years. It has considerable interest rate upside which makes it a promising income vehicle to hold as the FED pushes interest rates higher. The BDC covers its dividend payout with NII and DNOI. Shares sell for a considerable premium to NAV, which, in my opinion, is deserved. An investment in the stock yields 9.9 percent at today's price point.

I doubled down on Hercules Capital, Inc. (HTGC) last week when shares dipped on the announcement of a capital raise. Hercules Capital is one of the higher quality BDCs in my estimation, and the company has a superb growth history. Hercules Capital continues to cover its dividend payout with net investment income and distributable net operating income, and has upside potential during the current rate hiking cycle. Shares sell for a premium to the last reported net asset value, which is deserved. An investment in Hercules Capital yields 9.9 percent.

Source: Seeking Alpha

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