Blue-Chip 12% Yields: Why I Give Hercules Capital The Edge Over Trinity Capital | Seeking Alpha
Summary
- 12%-yielding tech lenders Hercules Capital and Trinity Capital now trade at similar 1.3x NAV multiples.
- I compare them side by side, identifying their pros and cons.
- I share why I give HTGC the slight edge but also why TRIN might make more sense for some investors.
- Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More »
Andrii Yalanskyi/iStock via Getty Images
Technology-focused BDCs (BIZD), like Blue Owl Technology Finance (OTF) and Hercules Capital (HTGC), have faced market headwinds so far this year due to concerns that AI could disrupt software business
Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The service also features regular trade alerts, educational content, and an active chat room of like-minded investors. Perspective: "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal; for where your treasure is, there your heart will be also... For what will it profit a man if he gains the whole world and forfeits his soul?" ~ Jesus (Matthew 6:19-21; 16:26)Learn more