In a recent article "Projected BDC Returns Vs. Risk" I listed the projected total returns for the 25 BDCs that I cover with KCAP Financial (NASDAQ:KCAP) near the top of the list and a projected return of 19.4% annually. But this was a simple calculation using the current dividend of 11.8% plus expected special dividends and dividend growth (which was none) plus its net asset value ("NAV") per share growth over the last twelve months of 7.6%. However I believe there is a good chance that its NAV per share could be impacted by future increases of non-performing loans that could also decrease potential earnings and cause dividend cuts similar to the one announced last month.
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