Hercules Capital: Dividend Raise, 10.3% Yield, But Not Cheap (Rating Downgrade)

Aug. 07, 2023 3:11 AM ETHercules Capital, Inc. (HTGC)HTGC5 Comments
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14.56K Followers

Summary

  • Hercules Capital is a well-managed business development company focused on the technology and life science sectors.
  • HTGC recently raised its regular dividend by 2.6% and saw strong portfolio performance in Q2.
  • With a forward dividend yield of 10.3% and a significant premium to net asset value, a neutral stock rating is appropriate.

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Thapana Onphalai

Hercules Capital, Inc. (NYSE:HTGC) is a very well-managed business development company that has a strong focus on the technology and life science sectors.

Before release of quarterly earnings, the BDC recently announced yet another raise in its regular dividend, by

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A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HTGC 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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