Tom Nash
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This Stock Averaged 14% Dividend Yield Over 4 Years
🕑 Added 2023-08-16 10:22:46 +0000 UTCThis might be one of the best dividend plays I have seen in a while. This company is trading at 900 million market cap, with a FWD Dividend Yield of 11% and an average of 14% over the past 4 years.
Its operating at 30% net income margin, and is trading at 3 times sales and a PE of 8, with revenue growth at 6.5% over the past year and 7% estimated for next year. The stock is not expensive at these rates and it has more upside on the appreciation side, beyond the dividends.
The company is MidCap Financial Investment Corporation (NASDAQ: MFIC).
MFIC is a business development company (BDC) that focuses on debt investments. It provides senior secured loans to businesses, particularly First Liens, and maintains a portfolio of $2.4 Billion corporate lending assets which provides it with interest payments.
The main risk of this stock is interest rates, but on the flip side. The end of the rate-hiking cycle by the FED and a lower-rate environment will mean the revenues will decline and that has to be accounted for if you are going to research this company.
Bottom line. MidCap focuses on stable and secure debt instruments and a high dividend output to investors, which makes it into a stable and noise free dividend stock for those who are looking into that type of component for their portfolio.
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Comments
Generico Fakero
not surprised to see you in this stock
Vlad-Marian Marian
We hold/accumulate this since March 2021 now and have made up to date 9% gains on the price + 21% gains on dividends = 31% total. That is about 12% / year.
