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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):
Over 7% Dividend Yield Supported By Rising Rates And Quality Portfolio
The Rose 93 Stock July Portfolio Update: Delightful Spicy Dividends Up 60.2% From 2017
Monroe Capital: Oversold With 10.6% Yield Reports This Week
First 5 Years As A 10% High Yield Investor: With New 10 Year Performance Tracking Chart
Stable 9.5% Yield And Shareholder Approval To Increase Leverage
50 Top Yield And 50 Top Gain Financial WallStars For July
Upcoming 3% To 4% Book Value Growth For This 9.2% Yielding BDC Positioned For Rising Rates
13.2% Yield At Risk Of Upcoming Dividend Cut
9% Dividend Yield Positioned For Rising Rates And Upcoming Special Dividend
This High-Yielding Sleep Well Investment Is About To Announce A Dividend Increase

More