HRZN - Horizon Technology Finance: Attractive Price Entry Offset By Drop In Portfolio Quality
2024-05-20 06:33:12 ET
Summary
- Horizon Technology Finance has a dividend yield of 11.4% and distributions are issued on a monthly basis, making this an attractive choice for income investors.
- The price has come since Q4 of 2023 due to the worsening credit quality of investment portfolio. This could be offset by investments made in Q1 of 2024.
- The price trades at a premium to NAV of nearly 20%, despite the price drop.
Overview
When I initially covered Horizon Technology Finance ( HRZN ), I argued that this was a solid business development company but it remained overvalued, which stopped me from initiating a position. The price has come down by almost 10% since then and the company has released their latest earnings report so I thought it would be a good time to reassess. We can see that over the last five-year time period, the price has struggled to gain any momentum after the decline in 2022. However, the high distribution rate has helped maintain a positive total return over the same time frame....
Horizon Technology Finance: Attractive Price Entry Offset By Drop In Portfolio Quality