New Mountain Finance: Dividend Stability And Income Tailwinds

Oct. 01, 2021 3:06 PM ETNew Mountain Finance (NMFC)NMFC14 Comments

Summary

  • New Mountain Finance has committed to paying out $0.30 through the end of 2022 via its recently announced dividend support program.
  • The company has generated sector-beating historic NAV returns while trading at a below-average valuation.
  • Recent reductions in debt interest cost and a new investment-grade rating are strong tailwinds for higher income levels in the coming quarters.
  • I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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This article was first released to Systematic Income subscribers and free trials on 24 September.

A persistent risk for income investors is the specter of dividend cuts in their holdings which, not only, lowers the income generated by

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This article was written by

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NMFC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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