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Overview
Business development companies have been a great way hedge against the high interest rate environment that we've been in for the past two years. This is because BDCs typically invest in debt capital that has
WhiteHorse Finance: Well-Covered Dividend But Lacks NAV Growth
Summary
- WhiteHorse Finance is a business development company that focuses on making investments in lower middle market companies.
- The company's portfolio is highly diverse and primarily consists of first lien senior secured debt, mitigating repayment risk.
- While WhiteHorse Finance offers a high dividend yield over 11% but the lack of growth in net asset value raises concerns about its overall performance.
- Non-accruals sit at 3% of cost, which remains above BDC peers of higher quality.
- The high interest rate environment has helped rake in more net investment income, but it seems to be putting a strain on some portfolio companies.
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.
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