Hercules Capital: High Dividend Yield, Growing Portfolio, And High Credit Quality

Summary

• Hercules Capital's total assets and net investment income have grown significantly over the past decade, and it has managed to increase its net investment income to asset ratio.
• The company's early loan repayments have been higher than expected, indicating a high-quality loan portfolio.
• Despite the failure of other banks in the current market conditions, Hercules Capital has managed to thrive due to its strategic investments and ability to identify and target growth companies.
• The company's significant return on assets growth can explain its higher-than-average P/B and P/NAV ratios.
• With a dividend yield of 13% and reliable distributions, HTGC is considered a good investment.

Olivier Le Moal

Hercules Capital (NYSE:HTGC) is a regulated investment company with total investments and total debt investments of $3.15 billion and $2.97 billion, respectively. The company has an effective yield of 15.1%. HTGC generally focuses its investments in venture capital-backed and institutional-backed companies

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.