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This Stable 10.1% Yielding BDC Is A Strong Buy At These Levels

Published Thu, 04 Oct 2018 07:37:08 -0400 on Seeking Alpha

I consider to BlackRock TCP Capital (TCPC) to be one of the most undervalued business development companies ("BDCs") given its history and potential dividend coverage, supported by a higher quality portfolio and management as discussed in this article.
TCPC Article Follow-Up: As mentioned in "I Recently Purchased This 10% Yielding BDC":
"I recently purchased additional shares of TCPC at a price of $14.22 before the March 2018 ex-dividend date and have already earned $0.72 per share in dividends (including $0.36 paid tomorrow). The Relative Strength Index or RSI is an indicator that I use after selecting a BDC that I would like to purchase, but waiting for a good entry point. Currently, TCPC has an RSI of 38 as shown below and in my BDC Google Sheets indicating that the stock is becoming 'oversold' or 'undervalued' as discussed below. However, it should be noted that there are currently quite a few BDCs with RSI's below 40."
The following is the chart from the previous TCPC article linked above:
After the article, TCPC's share price increased closer to $15 as shown below:

However, the stock price has fallen back to $14.25 with an RSI of 38:

What Happened? As shown above, TCPC reported Q2 2018 results on August 8, 2018, with its net asset value (“NAV”) per share declining by $0.29 per share or 1.9% (from $14.90 to $14.61) due to net unrealized losses of $20.5 million (or $0.35 per... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
BLACKROCK KELSO CAPITAL 5.28   0.0 -0.12 0.56 13.77
GARRISON CAPITAL 7.05   0.0 -0.17 0.92 13.14
FS INVESTMENT 5.85   0.0 -0.07 0.76 13.13
THL CREDIT 6.63   0.0 -0.86 0.84 12.92
CAPITALA FINANCE 8.20   0.0 -3.13 1.00 12.42
PENNANTPARK INVESTMENT 6.39   22.0 0.29 0.72 11.41
APOLLO INVESTMENT 16.05   13.6 1.18 1.80 11.32
PROSPECT CAPITAL 6.53   10.9 0.60 0.72 11.20
KOHLBERG CAPITAL 3.75   0.0 -0.25 0.40 11.05
FIDUS INVESTMENT 14.69   8.7 1.69 1.56 10.69
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
HERCULES TECH GROWTH CAP 12.66   9.6 1.32 1.28 9.99
HORIZON TECHNOLOGY FINANCE 11.94   9.6 1.25 1.20 9.92
PENNANTPARK FLOATING RATE CAPITAL 11.50   29.5 0.39 1.14 9.86
MEDLEY CAPITAL 2.55   0.0 -1.62 0.25 9.43
ARES CAPITAL 18.64   10.2 1.82 1.60 8.73
SOLAR SENIOR CAPITAL 17.30   18.8 0.92 1.41 8.29
ALCENTRA CAPITAL 8.84   14.0 0.63 0.72 8.00
OAKTREE STRATEGIC INCOME 8.29   20.2 0.41 0.62 7.65
GLADSTONE INVESTMENT 11.52   6.9 1.67 0.82 7.17
GOLUB CAPITAL BDC 18.34   15.5 1.18 1.28 6.97
MAIN STREET CAPITAL 42.47   16.5 2.57 2.46 5.80

BLACKROCK KELSO CAPITAL - BKCC
BLACKROCK KELSO CAPITAL - BKCC  


Older articles featuring Blackrock Kelso Capital (BKCC):
9.4% Yield Driven By 14 Consecutive Dividend Hikes And Still Growing: Capital Southwest
Assessing Risk: Retirement Portfolio Using BDCs Yielding 10%+
LOUD Dogs Flash Dividend Yields, Upsides, And Gains In July
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10% Yielding New Mountain Finance Receives Fitch Rating
Dividend Increases For The High-Yield BDC Sector, Part 5: BlackRock TCP Capital
Monroe Capital Offers 15% Yield Due To Portfolio Credit Issues
Tax-Loss Harvesting And Merger Fears Driving 10%+ Yield For BlackRock TCP Capital?
Your 50 Financial WallStars Show Bountiful Yields With Net Gains For November 2019
Why I Sold This 11.1% Yielding BDC That Could Now Be A 'Buy'

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