TRIN - Fidus: My Top Pick For The High-Yield BDC Sector In 2022

• Interest rates are rising and this article discusses the BDC sector currently yielding between 6% and 11% that will benefit.
• This article discusses FDUS currently yielding 9% and will continue to outperform the others.
• FDUS is well positioned for higher interest rates with 100% fixed-rate borrowings and portfolio companies with "cash interest coverage being 3.00x, which is very high."
• I'm expecting additional dividend increases plus quarterly supplemental and likely a large special dividend in Q4 announced before Oct. 15, as discussed below.
• Previously, FDUS was paying 50% of excess earnings but recently changed to 100%. Also, there's $1.56 of spillover that needs to be paid out in 2022.

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