TPVG - TriplePoint Venture Growth: Get Ready For A Dividend Cut (Downgrade)

2024-06-03 12:57:54 ET

Summary

• TriplePoint Venture Growth BDC seems likely to cut its dividend in the near future due to its balance sheet quality and net asset value declining.
• The BDC is facing pressure on its net investment income and continues to report investment losses.
• Shareholders are likely to see a dividend cut in the next 1-2 quarters due to weakening distribution coverage.

TriplePoint Venture Growth BDC ( TPVG ) is most likely headed for a dividend cut in the near term as the company’s net asset value and balance sheet quality continued to suffer in the first fiscal quarter. Although the BDC supported its dividend of $0.40 per-share quarterly with NII, there is practically no dividend safety left for TriplePoint Growth at this point. For those reasons, and considering the fact that the BDC continued to report investment losses in Q1'24, I believe the risk profile is skewed to the downside, and I am changing my rating to sell!...

For further details see: