Company Overview - Prospect Capital Corporation (PSEC) has total assets of $7.0 billion[7,10] - PSEC has invested over $21 billion since inception across over 450 investments, exiting over 325 of these investments[7,10] - Insider ownership is strong at 29%, representing approximately $0.9 billion of net asset value[8] Portfolio Composition - 80.2% of the portfolio is comprised of first lien, secured, or underlying secured assets[7] - Non-accrual loans remain low at 0.6%[7] - The portfolio includes 114 investments across 33 industries[7,10] - Real Estate accounts for 19.9% of the portfolio at fair value[24] Financial Performance & Funding - Net debt leverage is low at 0.41x[8,36] - Net investment income less preferred dividends exceeded cash common distributions by 103% for LTM March 2025[8] - 93% of total investment income for Q3 FY 2025 is from interest income[8,22] - Unencumbered assets are approximately $4.4 billion, representing 63% of total assets[10,33]

Core Points - PennantPark Floating Rate Capital Ltd. will report its financial results for the third fiscal quarter ended June 30, 2025, on August 11, 2025, after market close [1] - A conference call to discuss the financial results will be held on August 12, 2025, at 9:00 a.m. Eastern Time, with access details provided for participants [2] Company Overview - PennantPark Floating Rate Capital Ltd. is a business development company that primarily invests in U.S. middle-market private companies through floating rate senior secured loans, including first lien secured debt, second lien secured debt, and subordinated debt [3] - The company may also engage in equity investments occasionally [3] - The company is managed by PennantPark Investment Advisers, LLC, which oversees approximately $10 billion of investable capital [4] - PennantPark Investment Advisers, LLC has been operational since 2007, providing a range of financing solutions to middle-market borrowers [4]

Fitch Ratings affirms BBB- long-term issuer rating with a stable outlookDALLAS, July 02, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that Fitch Ratings (“Fitch”) has affirmed Capital Southwest’s investment grade long-term issuer rating of BBB- with a stable out ...

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on high-quality dividend stocks and assets that provide long-term growth potential, which can significantly contribute to income generation [1]. - A balanced portfolio that includes both growth and income-generating assets can lead to efficient investment income while maintaining a total return aligned with the S&P [1].

Group 1 - The outperformance of Business Development Companies (BDCs) is likely over for the foreseeable future, indicating a shift in market dynamics [1] - Previously, the BDC market was characterized by high-yielding income streams, growing dividends, and increasing market sizes [1] Group 2 - The article does not provide any additional relevant information regarding companies or industries beyond the BDC market performance [2][3]

Group 1: EPR Properties - EPR Properties is a REIT focused on experiential real estate, owning properties like movie theaters and casinos, providing stable cash flow for dividends [3] - The REIT pays $0.295 per share monthly, equating to an annual dividend of $3.54, yielding over 6% [4] - EPR retains about 30% of its cash flow for investments, planning to invest $200 million to $300 million in new properties this year, aiming for 3% to 4% annual cash flow growth [5] Group 2: Realty Income - Realty Income, known as The Monthly Dividend Stock, has raised its dividend 131 times since 1994, focusing on dependable monthly dividends [6] - The next monthly dividend payment is $0.269 per share, a 0.2% increase from the previous month, resulting in an annualized rate of $3.228 and a yield of approximately 5.5% [7] - Realty Income pays out about 75% of its cash flow in dividends, allowing for significant reinvestment in new income-generating properties [8] Group 3: Main Street Capital - Main Street Capital is a BDC providing capital to lower middle market companies, generating recurring income through its capital solutions model [10] - The company will pay $0.255 per share on July 15, with an annualized rate of $3.06, yielding over 5% [11] - Main Street Capital has increased its monthly dividend by 2% from the previous quarter and 4.1% year-over-year, also paying supplemental dividends to meet IRS distribution requirements [12] Group 4: Investment Opportunity - EPR Properties, Realty Income, and Main Street Capital are highlighted as ideal dividend stocks for generating monthly passive income, with potential for steady growth [13]

I have been long Fidus Investment (NASDAQ: FDUS ) since March 2024, when I realized that the BDC was trading slightly below NAV despite forthcoming high-probability equity sales. Plus, FDUS's capital structure, which at that time was almost the least leveraged in the entireRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT fra ...

Core Insights - The article discusses three dividend stocks: Ares Capital, W.P. Carey, and Realty Income, highlighting their high yields and strong track records in maintaining and increasing dividends [1][3]. Ares Capital - Ares Capital is the largest publicly traded business development company (BDC) with a $27 billion portfolio yielding an average of 9.8% [4]. - The company offers an 8.7% quarterly dividend yield, with a history of stable or rising payouts since 2009 [5]. - Ares Capital has a low nonaccrual rate of 0.9% in its investment portfolio, supported by a well-experienced underwriting team [6][7]. W.P. Carey - W.P. Carey is a diversified real estate investment trust (REIT) that has faced pressure after spinning off its office portfolio in 2023, resulting in a 19.7% dividend reduction [8][9]. - The REIT has a history of raising dividends, currently offering a 5.7% yield, with expectations for significant growth in the future [10]. - Management projects adjusted funds from operations (FFO) between $4.82 and $4.92, sufficient to cover its annualized dividend commitment of $3.60 [11]. Realty Income - Realty Income is a diversified REIT with a strong history of profit growth and a 5.7% yield, having raised its monthly dividend for the 131st time since its IPO in 1994 [12][13]. - The company operates 15,627 commercial properties across eight countries and recently issued €1.5 billion in notes at an effective rate of 3.7% [14]. - Realty Income's business model includes leasing back properties, providing a steady stream of income and potential for future dividend increases [15].

Core Viewpoint - A high dividend yield, such as TriplePoint Venture Growth's (NYSE: TPVG) current yield of 17.9%, often indicates potential concerns regarding the company's financial health [1] Group 1 - TriplePoint Venture Growth has a current dividend yield of 17.9% [1]

Core Viewpoint - The article emphasizes the growing interest in dividend stocks, particularly for investors approaching retirement, highlighting the appeal of regular income and reinvestment opportunities. Group 1: Ares Capital - Ares Capital is the largest publicly traded business development company (BDC) and provides direct loans to private middle-market companies in the U.S. [3] - The stock is affordable with a share price under $22 and a forward price-to-earnings ratio of 10.7 [3][4]. - Ares Capital has a forward dividend yield of 8.95% and has paid stable to growing dividends for 63 consecutive quarters [4]. - The total addressable market for Ares Capital is estimated at $5.4 trillion, positioning the company well for market growth [5]. Group 2: Enbridge - Enbridge is a leading player in the midstream energy industry, operating extensive crude and natural gas pipelines, and is the largest natural gas utility in North America [6]. - The company's diversified operations make it resilient across economic cycles, with less than 1% of EBITDA linked to commodity prices and approximately 80% protected from inflation [7]. - Enbridge has increased its dividend for 30 consecutive years, with a forward dividend yield of 6.07% and a distributable cash-flow payout ratio between 60% and 70% [8]. Group 3: Enterprise Products Partners - Enterprise Products Partners is another midstream energy leader, operating over 50,000 miles of pipeline and owning various energy assets [11]. - The company has a strong resilience, with around 90% of long-term contracts protected from inflation, and has consistently generated strong distributable cash flow [12]. - Enterprise Products Partners has increased its distribution for 26 consecutive years, with a forward distribution yield of 6.93% [13].