Fidus Investment: Price Decline Introduces An Attractive Opportunity For Accumulation

Cain Lee8.07K FollowersFollow5ShareSavePlay(13min)Comments(2)SummaryFidus Investment currently trades at an attractive discount to NAV valuation following the price decline.Recent Q4 earnings indicate that the earnings have remained within a consistent range. The portfolio remains resilient despite the greater BDC sector facing challenges.The latest declared quarterly distribution is $0.43 per share, which is supported by net investment income of $0.53 per share.FDUS's long-term debt has increased, but so has its level of new investment activity. As long as these new investments translate to higher earnings, it should not be an issue. Andrii Yalanskyi/iStock via Getty Images Overview It's earnings season for many Business Development Companies and this has caused lots of volatility throughout the sector. Fidus Investment (FDUS) recently reported its Q4 earnings, so I wanted to revisit this BDCThis article was written byCain Lee8.07K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FDUS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.