Dividends4Life: 10% Yield, 18% Discount: Crescent Capital BDC

10% Yield, 18% Discount: Crescent Capital BDC

Posted by D4L | Wednesday, February 10, 2021 | | 0 comments »

Looking for high yield at a discount? As we've noted in some of our recent articles, business development companies have been one of the more heavily-discounted areas of the market since the COVID Crash in March 2020. Although many of them have bounced back, rising triple digits from their March '20 lows, they're still negative over the past year. Some of them still trade at a discount to NAV/share.

Crescent Capital BDC (NASDAQ:CCAP) is a case in point - it's 151% above its 52-week low, but it's still down -5% from its 2/3/20 price of $16.40, when it began trading as CCAP on the Nasdaq. More importantly, it's trading at an -18.14% discount to its 9/30/20 NAV/share of $19.07. Put another way, that's a price/book of .82X, which is much cheaper than the BDC industry of average of 1.01X. CCAP also looks cheaper on its price/NII per share of 8.97X, vs. the industry average of 12.7X. Its dividend yield is a bit higher than average, at 10.51%, as is its EV/EBIT of 14.08X

Source: Seeking Alpha

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