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In my opinion, Hercules Capital (NYSE:HTGC) is a solid choice for any income investor looking to capture some reliable cash flow. The price entry is not the best right now, though, as it sits near an all-time high, so
Hercules Capital: High Profitability To Support 9.5% Yield, Limited Upside Though
Summary
- Hercules Capital, a Business Development Company, specializes in providing senior-secured venture loans to high-growth companies in diverse industries.
- Upside may be limited, but cash flow is strong and supports a generous dividend yield of 9.5%.
- Hercules Capital is currently trading at a premium to NAV of 51%.
- Investment Portfolio contains 95% floating rate loans and benefits from a high interest rate environment.
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.
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.
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