Dividends4Life: 9% Yield, Strong Growth

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9% Yield, Strong Growth

Posted by D4L | Tuesday, July 27, 2021 | | 0 comments »

We've been covering a number of business development companies in recent articles. This stock yields 8.87% at its mid-range 2021 dividend guidance. Mgt. upped the 2021 dividend forecast to grow 54% vs. 2020, to $3.00-$3.15. This article covers Valuations, Profitability & Performance vs. BDC avgs. and Earnings Growth.

This article covers a long-time holding of ours, Newtek Business Services Corp. (NEWT). We began covering NEWT on Seeking Alpha back in 2015, and have owned it ever since, holding it for its attractive income. While 2015 had a big $4.05 payout, due to a special distribution of $2.69, 2016 came back down to earth, with a $1.93 payout. 2017 had -15% growth, as did 2020, at -4.65%. However, NEWT's regular dividend growth averaged ~10% for 2016-2020. Management increased its 2021 dividend forecast to a range of $3.00 - $3.30 on its Q1 '21 release. The midpoint of the 2021 annual dividend forecast range would represent a 53.7% increase over the 2020 annual dividend.

Source: Seeking Alpha

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