Fidus Investment Corporation Aktie News

High-income investors face limited options for sustainable, high-yield investments, with traditional asset classes often highly correlated and yields rarely exceeding 7-9%. Business Development Companies (BDCs) offer attractive yields averaging 12.8%, with several high-quality players maintaining dividends even through challenging periods like COVID-19. However, rising interest rates pose a sig...

Fidus Investment covers its base dividend with net investment income and is growing net originations, supporting reliable income and portfolio growth. The portfolio has shifted toward higher-quality First Lien loans, resulting in improved credit quality and a low non-accrual ratio versus peers. The stock trades at a modest 5% premium to NAV, but strong fundamentals and dividend coverage suggest...

The BDC market's days of outperformance are likely over, with high yields but limited price and dividend growth expected going forward. Despite sector headwinds like lower base rates and falling credit spreads, select BDCs still offer attractive risk-reward for income-focused investors. In the article, I discuss my Top 2 BDC choices, which offer 10%+ yields that are backed by the industry-leadi...

FDUS trades at a 2% premium to NAV and offers an 11%+ dividend. Even though the BDC market outlook is unfavorable, in my view, it is worth paying a slight premium here. I discuss in detail why FDUS is, arguably, one of the best BDC picks now in the context of a (very likely) falling interest rate market.

BDCs are high-yield assets that can come in handy for income investors. Yet, attractive yields tend to be there for a reason. In the article, I share my key lessons learned from my relatively successful BDC investment journey.

BDCs do not respond well to falling interest rates. The consensus indicates that we will likely have more rate cuts in the near future. So, for many BDCs, this will be a problem.

Fidus Investment stands out among BDCs for solid performance, growing portfolio, and resilient NAV despite sector headwinds and lower base rates. High equity ownership and disciplined credit quality have enabled FDUS to outperform peers, maintaining income and dividend coverage even as others struggled. Balance sheet strength, low leverage, and ample liquidity support FDUS' defensive posture, b...

FDUS offers a strong 11.2% dividend yield with solid coverage, making it attractive for income-focused investors seeking reliable distributions. The portfolio is well-diversified, primarily in secured debt, and has outperformed peers on non-accrual rates despite macroeconomic headwinds. Recent earnings were solid, with stable net investment income and increased new investment activity, supporte...