HTGC Stock Recent News

Hercules Capital (HTGC) concluded the recent trading session at $19.38, signifying a +1.73% move from its prior day's close.

Recent market volatility has created attractive buying opportunities in high-yield stocks like Hercules Capital and Plains All American. HTGC offers a 10.4% total dividend yield, driven by a low-cost structure, strong portfolio performance, and robust operating fundamentals. PAA provides a very well-covered 7.3% distribution yield, supported by growing volumes, strong liquidity, and disciplined capital allocation.

Hercules Capital's valuation corrected at the beginning of the month due to economic concerns, but second-quarter earnings were strong. The BDC focuses on technology, life sciences, and renewable technology industries, with a debt portfolio valued at $3.41B in Q2'24. Portfolio and income trends are positive. Hercules Capital delivered 9% Y/Y NII growth in Q2'24.

24/7 Wall St. Insights Dividend stocks will come into favor as rates are lowered over the next two years.

Hercules Capital released record results for the second quarter, showing strong investment originations and healthy dividend pay-out ratio. Despite being expensive with a 63% premium to net asset value, Hercules Capital is considered a deep-value BDC buy. The market chaos last week created selling pressure on Hercules Capital, but the BDC remains a solid investment with high dividend stability.

Best-of-breed stocks in the BDC segment like Hercules Capital offer the potential for outsized total returns and high current income. HTGC has operational efficiency, alignment of interest due to internal management, and a strong balance sheet. The stock offers a 10.3% dividend yield that's well-covered by NII, strong portfolio performance and growth potential.

Pfizer's 15-year dividend-raising streak will most likely continue thanks to smart reinvestment of its COVID windfall. Hercules Capital offers income-seeking investors a yield above 10% at recent prices.

Hercules Capital offers a 10%+ dividend yield. Is this payout sustainable? HTGC's loan portfolio yields around 14%, with high overall credit quality. With a strong cost of capital arbitrage, we think NAV is set to grow and payouts should remain stable. Some are worried about the rate cycle, but HTGC's portfolio has built in hedges. We estimate only a 14% drop in profit if rates drop 200bps over the next year.

HTGC had record earnings in 2023 and in Q2 2024. It has demonstrated 10%-plus five-year dividend growth. Analysts' price targets and valuations were discussed, along with profitability, leverage, and performance.

Higher total investment income and solid balance sheet support Hercules Capital's (HTGC) Q2 earnings, with rising costs being an offsetting factor.