SSIC - Silver Spike Investment: Potential Gem's 8% Yield Not As Risky As It Seems

2024-06-24 14:42:00 ET

Summary

• Silver Spike Investment Corp. reported negative net investment income in latest earnings, but dividend yield remains safe with coverage of 132%.
• SSIC's potential catalysts include growth in the cannabis industry and possible federal legalization, which could positively impact their cash flows.
• Despite solid fundamentals and safe dividend yield, SSIC remains a hold due to unstable NAV and possible overvaluation.
• Aside from the most recent quarter, SSIC has performed solidly during the current macro environment.

Introduction

I'm constantly on the lookout for potential gems that could give investors strong upside and long-term potential for many years to come. As a dividend investor, I look for companies with not only attractive yields, but those that can reward investors with nice share price appreciation and growing dividends over time.

BDCs are some of my favorites to invest in due to their higher than normal yields along with their potential to be great, long-term investment vehicles. Deemed as risky investments as a result of their business structures, I think the outlook on the sector will likely change for the better in the foreseeable future....

For further details see: