pcess609
Introduction
If you're a BDC enthusiast like myself, or invest heavily in the sector, then you know BDCs are highly sensitive to the direction of interest rates.
With uncertainty surrounding the Fed's decision on rate cuts due to
MSC Income Fund: Let's See What The Fed Does First
Summary
- MSC Income Fund remains a hold due to economic uncertainty, short track record, and premium valuation despite solid management and fundamentals.
- Earnings showed mixed results: higher net investment income but declining total investment income and increased non-performing loans, raising caution.
- Dividend coverage is solid for now, but potential rate cuts and economic headwinds could pressure payouts and share price in coming quarters.
- I recommend adding MSIF only on significant pullbacks below $15, as current risks outweigh near-term upside potential.
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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.
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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