Seeking Alpha

THL Credit (TCRD) - is another overlooked BDC, similar to TCP Capital (TCPC) as discussed in my previous article and is considered one of the safer BDCs that has grown its portfolio in a fiscally prudent manner with a low amount of leverage, producing healthy earnings to cover its constantly growing dividend.

Business Development Companies ("BDCs") lend to small and mid-sized businesses, with limited financial leverage, paying out most of their income to investors and paying little to no corporate tax.

These are the five general criteria I use to evaluate BDCs:

  • Profitability (EPS to cover dividends, NAV and EPS growth)
  • Risk (diversification, portfolio quality, volatility, leverage)
  • Payout (sustainable, consistent, growing)
  • Analyst

Only subscribers can access this article, which is part of the PRO research library covering 3,761 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: