New Mountain Finance: You Can Get A 10% Yield Now

Aug. 27, 2024 6:45 AM ETNew Mountain Finance (NMFC)OCSL, GSBD, NMFC2 Comments
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Summary

  • New Mountain Finance Corporation covered its $0.32 per share base dividend with adjusted net investment income and paid a $0.02 supplemental dividend in Q2.
  • The company announced a reduction in its base management fee from 1.40% to 1.25%, enhancing its margin of safety.
  • NMFC stock is trading at a 3% discount to its net asset value, presenting a compelling risk-reward opportunity for passive income investors.
  • Despite an 8% decrease in interest income, the company maintained strong dividend coverage and offers a 10% yield, making it attractive for dividend-seeking investors.

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Henrik Sorensen

New Mountain Finance (NASDAQ:NMFC) is a well-managed business development company that covered its $0.32 per share base dividend with adjusted net investment income in the second quarter.

In addition, the business development company paid a $0.02 per share supplemental dividend, which

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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 NMFC 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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