TriplePoint Venture Growth's 17.9% yield is a red flag, with another dividend cut likely in the next 6–12 months. Despite improvements in leverage and liquidity, net investment income failed to cover the dividend, signaling ongoing risk. Economic uncertainty, lower base rates, and deteriorating credit quality further increase the risk of dividend reduction.
The Dividend Power strategy targets high-yield, low-valuation stocks, aiming for resilience in downturns and strong upside in bull markets. Six standout 'safer' Dividend Power stocks—ZIM, MSB, MITT, ABR, IRS, OUT—offer attractive yields supported by strong free cash flow. Analyst targets project 37% to 156% net gains for top ten DiviPower stocks by June 2026, with average estimated gains of 70%.
BDCs are exposed to some material headwinds. We can see how already several BDCs have cut their dividends. Theoretically, it might make sense to buy those that have made dividend cuts, which could indicate that the new yields are rather sustainable.
Charts? Dog photos? Me? An Opportunity to learn? So many reasons to like this article. Beware of extremely high return on equity figures. It looks great today, but you need to evaluate the source of the income.
BDCs have entered a challenging period. This is why the market has assigned notable discounts across the board. Some BDCs have become very deeply discounted.
Recent Fed actions and economic data suggest a material risk of further interest rate cuts in the near to medium term. Lower rates threaten BDC dividend sustainability, even for solid names like ARCC and BXSL, as shown by recent NII declines. In this article, I discuss two high-quality BDCs (not ARCC and BXSL), which investors should consider divesting if they also assume an interest rate cut s...
I am increasingly cautious on BDCs due to rising non-accruals, weaker earnings, and looser underwriting amid intense competition for private credit deals. Elevated interest rates are suppressing BDC valuations and making it harder for borrowers to service debt, leading to fewer quality investment opportunities. Dividend coverage is weakening across many BDCs, with higher non-accruals and PIK in...
TriplePoint Venture Growth's dividend coverage has weakened further after a 2024 cut, with payout ratios again exceeding 100%, raising the risk of another reduction. Persistent high non-accruals and continuous investment losses have eroded net asset value by 38% since Q4 2021, reflecting poor credit quality. TPVG trades at a steep 22% discount to NAV, signaling heightened investor concern over ...
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