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Dividend Increases For The High-Yield BDC Sector: Part 2

Published Sun, 10 Feb 2019 09:36:03 -0500 on Seeking Alpha

Business development companies, or BDCs, have begun reporting results, and this article discusses some of the items that investors should be watching.

Sources: SEC Filings and www.bdcbuzz.com.
In December 2018, I purchased additional shares of multiple 'oversold' higher-quality BDCs with risk-averse balance sheets prepared for a potential economic slowdown including Ares Capital (ARCC) at $15.27 for the reasons discussed in this article.
As investors jump back into financial stocks, the average BDC has easily outperformed the S&P 500 so far in 2019, but still has an average dividend yield of around 10.4%. It should also be noted that the average BDC continually outperforms high-yield corporate bond ETFs such as the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), and UBS ETRACS Wells Fargo Business Development Company ETN (BDCS).

Sources: SEC Filings and www.bdcbuzz.com.
Over the last eight weeks, I have had focus articles discussing MRCC, GAIN, OCSL, CGBD, FSK, HTGC, TPVG, GSBD, TCRD, PSEC, and PNNT.
ARCC had better price performance through December 31, 2018, and was not as oversold going into 2019 which is likely why it has not appreciated as much as the others.
It is interesting to note that BDCs with exposure to collateralized loan obligations (CLOs) such as PSEC, KCAP, and OXSQ are not having a good year so far.
BDC Dividend Changes For 2019
As mentioned in many... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
THL CREDIT 6.80   0.0 -0.19 1.08 15.98
MEDLEY CAPITAL 3.05   0.0 -1.63 0.00 13.11
APOLLO INVESTMENT 15.33   18.0 0.85 1.80 11.75
KOHLBERG CAPITAL 3.53   32.1 0.11 0.40 11.33
MONROE CAPITAL 12.27   36.1 0.34 1.40 11.29
PROSPECT CAPITAL 6.57   13.1 0.50 0.72 10.99
FIDUS INVESTMENT 14.84   7.3 2.04 1.56 10.59
HERCULES TECH GROWTH CAP 12.94   10.4 1.25 0.00 10.20
PENNANTPARK INVESTMENT 7.19   12.0 0.60 0.72 10.10
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
TCP CAPITAL 14.53   14.2 1.02 1.44 9.86
GOLUB CAPITAL BDC 18.23   13.8 1.32 1.28 9.67
GLADSTONE CAPITAL 9.00   28.1 0.32 0.84 9.08
GOLDMAN SACHS BDC 20.64   12.4 1.67 0.00 8.72
PENNANTPARK FLOATING RATE CAPITAL 13.20   14.0 0.94 1.14 8.70
GLADSTONE INVESTMENT 11.84   3.8 3.09 0.82 6.77
MAIN STREET CAPITAL 37.38   10.1 3.70 0.00 6.26
SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF 35.50   0.0 0.00 0.00 5.59
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 85.40   0.0 0.00 0.00 5.46
 

THL CREDIT - TCRD
THL CREDIT - TCRD  


Older articles featuring Thl Credit (TCRD):
Dividend Increases For The High-Yield BDC Sector, Part 3: TPG Specialty Lending
69 February 10%+ Dividend Yield WallStars Have Heart
Shutdown Could Be A Win For These High-Yield Venture Debt Providers
101 End-O-December 10%+ Yield Dividend WallStars Toast Tremendous Target Gains And A Merger
I Just Bought More TCG BDC, Which Is About To Rally With A Safe 13% Yield
18 'Safer' Dividend 10%+Yield WallStars Shine On Mid-December
18 'Safer' Dividend 10%+ Yield WallStars Twinkle Pre-December
24 'Safer' Dividend Financial WallStars For November Per Wizard Targets
Your 50 Financial WallStars Show Bountiful Yields With Net Gains For November 2019
18 'Safer' 10%+ Yield Dividend WallStars Aggregate For November

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