ARCC - Trinity Capital: This 14.3% Yield Looks To Be A Great Long-Term Buy For Income Investors
2024-04-19 15:00:00 ET
Summary
- Trinity Capital is a fairly new BDC with an attractive yield and solid fundamentals to go along with it.
- The company has shown strong growth, beating analyst estimates and delivering record net investment income in their latest quarter.
- Trinity Capital is defensively positioned with a focus on first-lien, senior secured loans and an investment-grade balance sheet and well-laddered debt.
- Although they trade at a slight premium above their NAV, I think this BDC is poised for further growth and still a buy at current levels.
- With interest rates likely to remain higher for longer, this will continue to place downward pressure on the BDC despite their solid performance.
Introduction
With the uncertainty surrounding the economy now may be the perfect time to boost your income. One way to do that is by investing in the BDC sector (BIZD). I've been a long time investor in this sector. And as you can see by my handle, you can understand why. But with interest rates now higher, and likely to remain for a bit longer due to stubborn inflation, this is a good time to be a dividend collector. No pun intended....
Trinity Capital: This 14.3% Yield Looks To Be A Great Long-Term Buy For Income Investors