J Studios
Overview
When I originally covered PennantPark Floating Rate Capital (NYSE:PFLT), back in April, a lot of my prior analysis was centered around the fact that I liked PFLT a lot more compared to its brother fund PennantPark Investment
PennantPark Floating Rate Capital: Abundance Of Cash That Will Fuel Growth Opportunities
Summary
- PennantPark Floating Rate Capital operates as a business development company focusing on strategic debt investments in middle market companies.
- PFLT's consistent performance is supported by a diverse portfolio of 146 companies with EBITDA between $10M and $50M. The diverse and well-managed risk approach helps the BDC thrive.
- Anticipation of interest rate cuts may impact net investment income in the short term but could lead to faster growth opportunities for PFLT's portfolio in the long run.
- Cash & equivalents currently sit at the highest levels ever over the last decade. In addition, the credit facility has been increased. I believe that PFLT will take advantage of growth opportunities with this increased liquidity.
- PFLT currently offers a dividend yield of 10.4%. Distributions are issued on a monthly basis.
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 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.
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