Solar Capital's Dividend Sustainability Analysis Through 2020 (Includes Current Recommendation And Price Target)

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About: Solar Capital (SLRC), Includes: ARCC, BDCL, BDCS, BIZD, GAIN, GAINM, NEWT, PSEC, TSLX
by: Scott Kennedy
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Scott Kennedy
Value, mREITs, BDCs, dividend investing
Summary

A growing number of readers have asked that I expand my detailed dividend sustainability "main ticker" articles to cover more BDC stocks throughout the year.

This article analyzes SLRC's dividend sustainability by performing three tests based on historical and projected quarterly results. This should be considered a yearly "checkup".

The first test analyzes SLRC's NII which is based on GAAP while the next two tests analyze SLRC's net ICTI and cumulative UTI which are based on IRC methodologies.

Summarized results from the three tests performed, including a projection of SLRC's quarterly dividend for 2020, are stated within the "Conclusions Drawn" section of the article.

I currently believe SLRC remains attractively valued as my price target is approximately 20% higher versus the company's current stock price.

Author's Note: Hi readers. This is my 500th article on Seeking Alpha. I just wanted to provide a quick note about this "milestone" per se. As my long-term readers know, I only write 1-2 articles