Yield + CAGR at a low RRR

Why PennantPark Floating Rate Capital Is A Tough Call

PennantPark Floating Rate Capital (NASDAQ:PFLT) is a BDC (Business Development Company) that is vibrating with questions. Why does a BDC with calendar Q2-13 NII of $0.31/share (or a run rate of $1.24/year) have a full year NII (Net Investment Income) projection of $1.12/share and a 2014 projection of $1.09/share? Why is the NII projection falling? With last twelve months dividend growth of 9.07%, what are the prospects for forward dividend growth? Is the dividend safe enough to be an alternative to a junk bond fund or a BDC baby bond? In this article, I will provide answers to some of those questions. I will provide a metric focused look at the Q2-13 earnings; generate a NII/share projection; show

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details