Fidus Investment Corporation Aktie News

My income portfolio prioritizes resilient, high-dividend securities with long-term positive NAV trends rather than trading based on unpredictable short-term price movements. Therefore, I focus on funds that have demonstrated value creation since launch, especially those with at least a decade of performance history, with its accompanying ups and downs. In this article, I show how the NAVs of al...

2 BDC Value Creators For Durable NAV And High Income

Fidus Investment (FDUS) and Trinity Capital (TRIN) stand out as high-yield BDCs with differentiated strategies and disciplined risk management. FDUS focuses on lower middle-market companies, combining debt and equity investments, resulting in strong alignment and a 10% yield with robust dividend coverage. TRIN leverages internally sourced venture and equipment finance deals, utilizes interest r...

Investors are currently adopting a more conservative stance, favoring high-quality value and durable income. However, this rotation coupled with lower interest rates echoes a bit 2022's system-wide yield compression (when high-quality income was overcrowded due to a desparate search-for-yield activity). So, finding double digit dividends that are backed by strong fundamentals has become more di...

BDCs have started this year strong. News on the interest rate and labor market front have been refreshing. Yet, not all BDCs have performed well so far. Namely, 4 BDCs have contracted.

Fidus Investment is rated a Buy, offering a covered 10% aggregate dividend yield and trading at a small premium to NAV after a 1-year dip. FDUS's portfolio is 73% first lien debt, with non-accruals at fair value at 0.3%, well below BDC averages, highlighting strong credit quality. Aggregate dividend coverage remains tight post-rate cuts, but $39.5 million spillover income provides a buffer for ...

I focus on business development companies, or BDCs, with durable dividends, strong downside protection, and resilience to rate and credit risk shifts. However, there is also a merit of including BDCs, which would qualify for tactical investment bucket - i.e., high risk, high return. In the article I outline the rationale of having such exposures and provide two practical examples, which carry h...

BDC sector valuations remain depressed, with P/NAV metrics under 1x due to falling rates and credit risk concerns. Dividend sustainability is diverging across BDCs; not all will cut, but the ones with sustainable dividends do not automatically have strong total return prospects. I highlight one BDC as a compelling bargain with strong total return prospects and contrast it with another viewed as...