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11.7% Yield Positioned For Rising Rates And Ready To Rally

Published Wed, 13 Jun 2018 05:52:02 -0400 on Seeking Alpha

Business development companies ("BDCs") were pulling back (since May 2017) and as mentioned in "BDC Buzz Begins Purchases Of Higher Quality BDCs," I have been buying additional shares of higher-quality BDCs, especially given the oversold conditions driving higher yields. As shown below, TriplePoint Venture Growth (TPVG) currently has a much higher yield than the average BDC:

Seeking Alpha has decided to make articles such as this one available for the first 10 days only. The following articles are still available (for free) to all readers:
"9.6% Dividend Yield And Trading 15% Below Book Value" "8.3% Dividend Yield 'Safe Enough For Your Grandma' And Positioned For Rising Rates" "Solar Senior Capital: 8.4% Dividend Yield Covered Through Fee Waivers" Since March 1, 2018, the average BDC has easily outperformed the S&P 500 even before taking into account dividends paid. I am expecting BDCs to continue higher for many reasons, including:
Rising interest rates and portfolio yields Poorly managed BDCs taken over and turned around Recent insider purchases Relaxed regulations and tax reform The recently announced Q1 2018 results reported by most BDCs included higher portfolio yields and management guidance for increased portfolio growth potential in 2018. Also, many BDCs reported higher-than-expected earnings and dividend coverage with increased net interest margins.

As shown in the following chart,... Read more


TPVG - TPVG
TPVG - TPVG  


Older articles featuring Tpvg (TPVG):
11.1% Yielding Portfolio With Good Coverage And Decent Growth Prospects
THL Credit: Priced For A Dividend Cut, Driving 16.2% Yield And Continued Rally
My Dividend Growth Portfolio Closes Out 2018
2018 Full-Year Report - Down 10% High Yield Income Train, Non-Stop 5 Years Running
Your 50 Financial WallStars Show Bountiful Yields With Net Gains For November 2019
10% High-Yield 10 Months 2018 Performance; Including October's Wild Ride
Sector Pullback Drives 10.3% Yield For This Defensively Positioned BDC
This 10.0% Yielding Tech-Focused BDC Will Likely Increase Its Dividend
This Stable 10.1% Yielding BDC Is A Strong Buy At These Levels
2018 Nine-Month Review: 10% High-Yield Retirement Income Continues Unabated

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