The Blue Harbinger Watch List contains information on attractive investment opportunities that we do not currently own, but may consider purchasing if/when market conditions are right. Without further ado, here is the list…
Saratoga Investment Corp (SAR): 9.2% Yield
After speaking with the CFO (Henri Steenkamp) of Saratoga Investment Corp. for 40 minutes earlier this week, our main takeaway is that the 9.2% dividend yield of this small cap BDC is healthy (with room to grow) because the company continues to enjoy an attractive valuation, several important competitive advantages, and may actually be less impacted by some of the big risks facing the BDC industry as a whole.
Ares Capital (ARCC): 9.3% Yield
Stag Industrial (STAG): 5.8% Yield
Realty Income (O): 4.4% Yield
Welltower (HCN): 5.2% Yield
Potash (POT): 2.0% Yield
Main Street Capital (MAIN): 6.1% Yield
We first wrote about the attractiveness of Main Street Capital back in May (read that report here), and it has since increased modestly in price. It also raised its already big monthly dividend. And what makes it particularly attractive right now is its recent selloff in November as the Fed signaled higher rates are coming and high yield equities (like Main Street) sold off in general. We also like its internal management team, as well as the possibility (and track record) of additional supplemental dividends, above and beyond the standard 6.8% dividend yield. Main Street announced earnings last week, and exceeded street expectations by $0.03 per share.