Published Thu, 03 Sep 2020 16:29:52 -0400 on Seeking Alpha
Seeking AlphaDividend IdeasBDC Retirement Income: 12% Yielding New Mountain FinanceSep. 3, 2020 4:29 PM ET|| About: New Mountain Finance (NMFC), NMFX, Includes: AINV, ARCC, CGBD, FDUS, FDUSG, FDUSL, FDUSZ, GAIN, GBDC, GLAD, GSBD, HTGC, MAIN, MRCC, OCSL, PBB, PBC, PFLT, PNNT, PNNTG, PSEC, TCPC, TPVG, TSLXby: 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 yielding around 12% and their safer notes - baby bonds/preferred shares with yield-to-maturities ranging from 6% to 10%.
NMFC is trading 14% below book value/NAV and yielding 12.0%.
"We’re confident absent a dramatic change in market conditions and our ability to generate approximately $0.30 of NII per quarter going forward to support the dividend."
This article includes the COVID-19 related discussions (and charts) with management that are very similar to the other BDCs.
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. The previous article discussed PennantPark Investment (PNNT) trading at a 53% discount to book value and currently yielding 13.2% and its Baby Bond that trades under the symbol "PNNTG":
PennantPark Investment: 55% Discount To Book Driving 14% Yield
This article discusses New Mountain Finance (NMFC) currently yielding 12.0% and its Baby Bond that trades under the symbol "NMFX" with a yield-to-maturity between 6% and 7% (depending on pricing, need to set limit orders).
NMFC June 30, 2020 Update
For Q2 2020, NMFC hit its base case projections after taking into account one-time... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|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|
|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|
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