Dividends4Life: 10% Yield, 7% Discount

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10% Yield, 7% Discount

Posted by D4L | Monday, March 01, 2021 | | 0 comments »

Business Development Companies offer the retail investor exposure to privately-held firms, which often are funded by venture capital firms. This BDC yields 9.77%, with 1.08X trailing coverage for 2020, and at least 1.13X coverage in Q4 '20. Management estimates that NAV/Share rose 4% in Q4 '20. It is selling at a -7.11% discount to its Q4 '20 NAV/Share.

BlackRock TCP Capital Corp (TCPC) is a BDC, specializing in direct equity and debt investments in middle-market, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It seeks to invest in the United States. The fund typically invests between $10M and $35M in companies with enterprise values between $100M and $1500M. It prefers to make equity investments in companies for an ownership stake.

Source: Seeking Alpha

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