Business Development Companies like Gladstone Capital (NASDAQ:GLAD), Full Circle (NASDAQ:FULL), Ares (NASDAQ:ARCC), and Kohlberg Capital (NASDAQ:KCAP)
have to strike a balance between growing their portfolio (which drives
future dividend growth) and compromising value and credit quality in
doing so. Gladstone has made some good progress since my December writeup
in terms of credit quality, with non-accruals and unrealized losses
both shrinking. While portfolio growth is still a concern (as is
management's need to waive fees to protect the dividend), there's an
interesting mix of value and income here for more risk-tolerant
investors.
Read more here:
Gladstone Capital Is Seeing Better Credit, But Growth Is A Concern
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