Hercules Capital: 3 Reasons Why The Market Is Wrong (Rating Upgrade)
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The Asian Investor31.49K FollowersFollow5ShareSavePlay(9min)Comments(2)SummaryHercules Capital delivered robust Q4 net investment income, portfolio growth, and record loan originations, supporting both its regular and supplemental dividends.HTGC's portfolio quality is exceptional, with non-accruals at just 0.1% of fair value and strong dividend coverage ratios consistently above 120%.The company announced new supplemental dividends for 2026, raising the forward yield to 12% and enhancing total return prospects for dividend-focused investors.Despite a 31% NAV premium, HTGC's excess coverage, strong loan quality, and dividend safety justify its position as a top BDC pick. Richard Drury/DigitalVision via Getty Images Hercules Capital (HTGC) slightly missed estimates for net investment income by $0.01/share last week despite strong demand for new loan originations in a falling-rate world. The investment firm also maintained very robust balance sheetThis article was written byThe Asian Investor31.49K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure: I/we have a beneficial long position in the shares of HTGC, TRIN either through stock ownership, options, or other derivatives. 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.