Published Tue, 01 Sep 2020 12:34:56 -0400 on Seeking Alpha
Seeking AlphaDividend IdeasPennantPark Investment: 55% Discount To Book Driving 14% YieldSep. 1, 2020 12:34 PM ET|| About: PennantPark Investment (PNNT), PNNTG, Includes: AINV, ARCC, BKCC, CGBD, CSWC, FCRD, FDUS, FDUSG, FDUSL, FDUSZ, FSK, GAIN, GBDC, GSBD, HTGC, MAIN, NEWT, NMFC, NMFX, OCSL, ORCC, PBB, PBC, PFLT, PSEC, SCM, TPVG, WHFby: BDC BuzzBDC Buzz Sustainable DividendsBuild a portfolio with sustainable dividend yields ranging from 8% to 12%SummaryThis is a series of articles discussing retirement portfolios using BDCs currently around 12% and their safer notes - baby bonds/preferred shares with yield-to-maturities ranging from 6% to 10%.
This article discusses PNNTG which is trading 55% below book value/NAV driving a current yield of 13.6% that is easily covered by income.
For higher yield investors this is a much better BDC investment with similar yields.
Also mentioned is its Baby Bond "PNNTG" currently considered a Buy trading at an 8% discount to par with a 7.7% yield-to-maturity over the next four years.
This article is part of a series discussing how to build a retirement portfolio using Business Development Companies ("BDCs") currently yielding almost 12% and their safer notes - baby bonds/preferred shares with yield-to-maturities ranging from 6.5% to 10.0%. Please see the end of the article for a list of BDCs that I will be covering over the next two weeks.
Business Development Companies were created by Congress in 1980 to give investors an opportunity to invest in private small- and mid-sized U.S. companies typically overlooked by banks. The following slide from Ares Capital (Nasdaq: ARCC) breaks out many of the requirements of the BDC/RIC structure including 70% of assets in U.S. private companies diversified by size and sector.
This article discusses PennantPark Investment (PNNT) currently yielding 13.6% and its Baby Bond that trades under the symbol "PNNTG" with yield-to-maturity between 7% and... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|BLACKROCK KELSO CAPITAL||5.25||0.0||-0.12||0.56||13.61|
|STELLUS CAPITAL INVESTMENT||13.45||8.2||1.65||1.36||10.16|
|OAKTREE SPECIALTY LENDING||4.90||0.0||-1.39||0.50||10.02|
|PENNANTPARK FLOATING RATE CAPITAL||11.68||30.0||0.39||1.14||9.81|
|HERCULES TECH GROWTH CAP||13.26||10.0||1.32||1.28||9.55|
|GOLDMAN SACHS BDC||20.29||22.5||0.90||1.80||8.88|
|NEWTEK BUSINESS SERVICES||22.91||0.0||0.00||2.32||8.09|
|GOLUB CAPITAL BDC||18.55||15.7||1.18||1.28||6.89|
|MAIN STREET CAPITAL||43.18||16.8||2.57||2.46||5.69|
Older articles featuring Blackrock Kelso Capital (BKCC):Preliminary Q2 Results For The BDC Sector Currently Yielding 13%
Earn An 8% To 10% Balanced Portfolio Yield Investing In America: Part 1
Quick BDC Market Update: 18% Average Yield But Continued Volatility
Why Investors Are Selling 12% Yielding Monroe Capital
Juul Investor BlackRock TCP Capital Currently Yielding 10.3%
Building A Retirement Portfolio With 6% To 9% Yield: Apollo Investment
Building A Retirement Portfolio With 6% To 9% Yield: Part 5
Building A Retirement Portfolio With 6% To 9% Yield: Part 4
Building A Retirement Portfolio With 6% To 9% Yield: Part 2
Building A Retirement Portfolio With 6% To 9% Yield: Part 1