Dividend-News

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This 10.0% Yielding Tech-Focused BDC Will Likely Increase Its Dividend

Published Thu, 25 Oct 2018 13:20:01 -0400 on Seeking Alpha

Quick HTGC & BDC Buzz History As many readers know, I am typically a 'Buy and Hold' investor making additional purchases during general market pullbacks (including this one) and only selling if there are serious issues. I have been investing (on and off) in Hercules Capital (HTGC) over the last 10 years and writing public articles on Seeking Alpha discussing the stock for over 5 years. The most recent public article was July 29, 2018 - "Upcoming 3% To 4% Book Value Growth For This 9.2% Yielding BDC" discussing upcoming the anticipated increase in book value (or NAV) for HTGC.

There is a chance that I will be purchasing additional shares for the reasons discussed in this article including:
NAV per share growth potential Likely increased regular dividend Maintaining higher credit quality Being oversold along with the entire sector as (discussed at the end) Change in HTGC NAV Per Share As predicted in “Upcoming 3% To 4% Book Value Growth For This 9.2% Yielding BDC” linked above, during Q2 2018, HTGC's NAV per share increased by 5.1% or $0.50 per share from $9.72 to $10.22 mostly due to accretive share issuances and its equity position in DocuSign Inc. (DOCU) .
In April 2018, DocuSign, a company that provides electronic signature technology and digital transaction management services for facilitating electronic exchanges of contracts and signed documents, completed its IPO debut raising approximately $725 million pricing 25... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
FS INVESTMENT 5.85   0.0 -0.07 0.76 13.13
APOLLO INVESTMENT 15.13   17.8 0.85 1.80 11.80
KOHLBERG CAPITAL 3.58   0.0 -0.25 0.40 11.27
PROSPECT CAPITAL 6.61   13.2 0.50 0.72 10.89
PENNANTPARK INVESTMENT 6.90   11.5 0.60 0.72 10.42
TCP CAPITAL 14.12   18.3 0.77 1.44 10.13
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
ARES CAPITAL 17.00   8.4 2.02 1.60 9.36
GLADSTONE CAPITAL 9.04   28.2 0.32 0.84 9.27
NEWTEK BUSINESS SERVICES 18.50   0.0 0.00 1.60 8.12
GOLUB CAPITAL BDC 17.83   13.5 1.32 1.28 7.19
GLADSTONE INVESTMENT 11.60   3.8 3.09 0.82 6.99
MEDLEY CAPITAL 3.21   0.0 -1.63 0.20 6.35
MAIN STREET CAPITAL 37.72   13.4 2.81 2.40 6.31