Trinity Capital: My Favorite BDC Right Now

On the Pulse
14.61K Followers
(8min)

Summary

  • Trinity Capital offers a diversified asset mix and floating-rate exposure, making it a compelling passive income vehicle in a higher-for-longer rate environment.
  • Consistent dividend coverage and a 14% yield, with potential for a 2% dividend hike in 2Q25, underscore its strong income potential.
  • The BDC's net investment income surged 26% YoY in 3Q24, driven by new originations and higher interest rates, supporting future growth.
  • Trading at a 10% premium to NAV, TRIN could re-rate higher if it continues to grow its investment portfolio and net investment income in 2025.

Businesspeople walking on painted up going graph, on asphalt

Klaus Vedfelt

Trinity Capital Inc. (NASDAQ:TRIN) is a business development company with a sizable middle market-focused loan segment and a complimentary equipment financing segment.

The BDC did not declare any special dividends in 2024, but nonetheless has good overall dividend coverage

This article was written by

14.61K Followers
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 TRIN 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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