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BDC Retirement Income: 12% Yielding New Mountain Finance

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.
Introduction
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
MONROE CAPITAL 10.48   18.4 0.57 1.40 13.60
PENNANTPARK INVESTMENT 6.32   21.8 0.29 0.72 11.32
PROSPECT CAPITAL 6.71   16.8 0.40 0.72 10.76
APOLLO INVESTMENT 16.78   14.2 1.18 1.80 10.73
FIDUS INVESTMENT 14.84   8.8 1.69 1.56 10.53
TCP CAPITAL 13.75   29.3 0.47 1.44 10.48
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
GLADSTONE CAPITAL 9.50   63.3 0.15 0.84 8.84
ARES CAPITAL 19.19   10.5 1.82 1.60 8.39
GOLUB CAPITAL BDC 18.55   15.7 1.18 1.28 6.89
GLADSTONE INVESTMENT 12.34   7.4 1.67 0.82 6.73
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69

MONROE CAPITAL - MRCC
MONROE CAPITAL - MRCC  


Older articles featuring Monroe Capital (MRCC):
Reader Favorites And Rogues 9/9 To 10/8 Show 35 Dividend Dogs Ready To Adopt
62 10%+Yield Dividend Stocks Priced $5-15 For August Dog Days
Preliminary Q2 Results For The BDC Sector Currently Yielding 13%
Upcoming NAV Changes For The BDC Sector Yielding 14%
69 10%+ Yield Dividend Dogs Priced $5-$15 For July
Dividends By The Numbers In June 2020 And 2020-Q2
Upcoming Rally For BDCs Currently Yielding 13%
The Worst May Be Behind Us For Coronavirus Recession Dividend Cuts
Earn An 8% To 10% Balanced Portfolio Yield Investing In America: Part 1
TCG: Why I Bought Carlyle Group's BDC Currently Yielding 21%

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