If you are not aware, Triangle Capital announced last month that it is selling its investment portfolio to Benefit Street Partners for cash; and Barings will become the company’s new investment advisor. In our view, this liquidation is NOT ideal, however it is still very attractive for TCAP shareholders. Here’s why…
This "Members Mailbag" report includes a brief update on big-dividend BDC Triangle Capital (TCAP) following an inquiry from Blue Harbinger member Bob S.; Bob’s full inquiry is included below, but he’s basically asking about the “strategic alternatives” discussed by management during the quarterly call, and he also notes that TCAP’s “former CEO really screwed up.” This write-up includes our opinion on the future of TCAP.
One of our colleagues had a great line during his CNBC interview this week. He said: “As an investor, the pain of buying at 100 and watching something go to 10, is only trumped by the pain of actually selling something at 10 and watching it go to 100.” The post-earnings selloff this article discusses wasn’t anywhere near that extreme, but we do believe the worst is behind the company.
This report is a continuation of our free public report titled "15 Attractive +7% Yields Worth Considering" except in this members-only version, we share the Top 5. We believe all five are extremely attractive high-income opportunities, and we own all 5 of the top 5.
Triangle Capital is a Business Development Company (BDC) with an enormous 9.3% dividend yield. The share price has barely budged this year starting out at $19.11 and currently sitting at $19.32. However, the company cut its regular quarterly dividend by $0.09 per share back in May. The big question for income-focused investors: Is this amazing 9.3% dividend yield safe, or is it a dangerous trap to avoid?
In this week’s Blue Harbinger Weekly, we provide a brief performance review and outlook for each of the 28 holdings across our Blue Harbinger strategies. We also provide access to a members-only report on our “Top 3 Covered Call Stocks.” Lastly, you’ll notice we’ve updated performance though the end of July, and all three Blue Harbinger strategies continue to significantly outperform.
We have multiple exciting updates in this week’s Blue Harbinger Weekly. First, we’ve placed several new trades in the Blue Harbinger Income Equity strategy bringing the portfolio's aggregate dividend yield to over 5.0%. Second, in a continuation to our public report Nine Big Dividend Stocks Worth Considering we have included detailed reports for each of the Top Five Big Dividend Stocks (and yes, we do own all five in in the Blue Harbinger Income Equity strategy).
Triangle Capital cut its big dividend this week, and we bought shares shortly thereafter. Following the dividend cut, the stock declined roughly 15%, the yield is now around 10.5%, and we believe the company is significantly undervalued. Specifically, we bought Triangle because of its attractive cash flows, its big dividend yield, its strong internal management team, and its multiple layers of diversification benefits within the Blue Harbinger Income Equity portfolio.