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Fidus Investment (FDUS) offers an 11% dividend yield and trades at a 1% premium to NAV, with efficient net investment income generation due to low leverage and low interest expense. The company's Q1 adjusted net investment income was flat at $0.54, with a stable NAV and a managed dividend policy ensuring 100% coverage. FDUS's portfolio quality remains strong, with modest non-accruals and improved internal ratings.

Blue Owl Capital Corp.'s recent merger with OBDE enhances its portfolio, size, and funding costs, making its high yield attractive despite potential risks. OBDC's solid credit quality, defensive portfolio, and spillover income ensure reliable dividend coverage, even with lower base rates and economic uncertainties. The BDC's current 3.36% discount to NAV and double-digit yield offer high-yield investors a compelling income opportunity, especially retirees.

MAIN stands out for its disciplined, internally managed BDC model, prioritizing sustainable dividends and steady NAV growth over headline yields. Q1 2025 results showcased strong NAV growth, robust dividend coverage, and a standout equity exit, reinforcing MAIN's value-creation strategy. The company's conservative dividend policy, with regular and supplemental payouts, ensures reliability and resilience even in volatile markets.

I am initiating coverage of Cornerstone Strategic Investment Fund with a buy rating for its consistent, high income and solid long-term returns. CLM closely tracks the S&P 500, offering diversified exposure to large-cap stocks, and boasts a forward yield near 20%. Unique features include dividend reinvestment at NAV and tax advantages, though the aggressive payout policy risks NAV erosion in weak markets.

SAN JOSE, Calif., May 15, 2025 (GLOBE NEWSWIRE) -- Firsthand Technology Value Fund, Inc. (OTCQB: SVVC) (the “Fund”), a publicly traded venture capital fund that invests in technology and cleantech companies, announced today its financial results for the quarter ended March 31, 2025.

Prospect Capital (PSEC) has been a poor performer, trading at its largest discount to NAV in a decade due to earnings decline and poor financials. PSEC's heavy reliance on real estate makes it vulnerable to high interest rates, causing a significant NAV decline and underperformance against peers. Despite a high dividend yield of 14.9%, the long-term sustainability is questionable, with no significant improvements in portfolio structure or new investment activity.

Prospect Capital's market cap has plummeted 31% over the last year, driven by a sustained decline in net asset value (NAV) and dividend cuts. The BDC's fiscal 2025 third-quarter NAV per share fell to $7.25, down from $7.84 in the previous quarter. PSEC was downgraded to junk status by both S&P and Moody's. Both agencies cited rising payment-in-kind (PIK) interest payments and declining credit quality as core issues.

Total Return can be misleading if not supported by NAV growth, as it may include unsustainable distributions and Return of Capital. Behavioral finance shows markets are irrational, making it crucial to consider practical aspects beyond theoretical Total Return calculations. I believe that NAV performance can affect our discretion in the reinvestment choices for the distributions we receive from our savings much more than Total Return.

Michael Saylor's strategy involves using debt to accumulate Bitcoin, leveraging traditional financial tools to maximize returns on Bitcoin investments. MSTR trades at a premium to Bitcoin NAV due to its exposure to leverage, simplicity, and convenience relative to other Bitcoin products. The company's capital structure includes selling shares, convertible notes, and preferred shares, each with varying impacts on BTC yield and risk.

Pebblebrook Hotel Trust is a hospitality REIT, which has repositioned itself towards leisure-oriented properties in recent years. Despite a healthy financial position, the dividend remains at a nominal $0.01/share, deterring yield-focused investors, while management focuses on share repurchases. Given the low dividend yield and prolonged undervaluation, I rate Pebblebrook Hotel Trust as a "Sell".