Hercules Capital: An Interesting BDC With A 7.2% 'Regular' Yield

Apr. 07, 2022 6:09 AM ETHercules Capital, Inc. (HTGC), , , , 80 Comments
Cash Builder Opportunities
Investing Group Leader

Summary

  • Readers have brought up Hercules Capital several times; this is my initial dive into the fund.
  • At present, the premium over NAV of this BDC is quite elevated even relative to its own history.
  • HTGC's dividend has been bumped up at the end of 2021, and regular supplemental payouts could be causing investors to chase the valuation.
  • This idea was discussed in more depth with members of my private investing community, Cash Builder Opportunities. Learn More »

Business development to success and growing growth concept. Businessman pointing arrow graph corporate future growth plan

marchmeena29/iStock via Getty Images

Written by Nick Ackerman. This article was originally published to members of Cash Builder Opportunities on March 23rd, 2022.

Hercules Capital (NYSE:HTGC) is one of the more prevalent business development companies out there today. One

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This article was written by

Cash Builder Opportunities
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Cash Builder Opportunities (aka Nick Ackerman) is a former fiduciary and a registered financial advisor with 14 years of investing experience.

He is the leader of the investing group Cash Builder Opportunities, where his specific focus is on closed-end funds, dividend growth stocks, and option writing as an attractive way to achieve income. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HRZN, MAIN, TRIN either through stock ownership, options, or other derivatives. 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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