TPVG - TriplePoint Venture Growth: Dividend Cut Looks 2 Quarters Away

2024-03-07 10:51:40 ET

Summary

• TriplePoint Venture Growth experienced a rough quarter with $52 million in realized losses and a decline in portfolio value.
• The company has been able to maintain its dividend by waiving the incentive fee, but this may lead to talent leaving the company.
• We tell you why TriplePoint Venture Growth is a Sell despite the high yield.

Everyone knows that you pay for quality and good stocks tend to be expensive. That is the reason in our first article on TriplePoint Venture Growth ( TPVG ), we were bemused by the fact that investors were ponying up extra for this business development company, or BDC. Perhaps the reason was the dividend yield. The high dividend rate on common equity was certainly a juicy draw. But what the stalwart BDCs could not accomplish with a stable and increasing NAV, TPVG was aiming to do with a declining one....

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