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BlackRock Capital Investment Corporation Message Board

  • So tell me what I am missing. At $10.15 with a confirmed dividend of $.32 in a couple weeks, am I not into this at NAV? Low leverage, and even if the divi gets cut some, this looks like a no brainer from this edge of the table.

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    • I think you have to look at a normalized future dividend yields. I believe all BDCs are more or less traded on a multiple of their dividend. Right now, BKCC probably can support a $1.04 dividend. This would give BKCC a roughly 10% dividend yield. Not to bad so your downside from here is limited.

      The question now is whether BKCC can put to good use their $200mm in available dry powder. If they can earn a net interest spread of 7% on this money, it would add $.19 to their dividend. Who knows, the middle market loan origination market is getting tighter and they don't seem to have a great origination window. I guess only time will tell but I did pick up about a 1,000 share at under 10.50 today.

      At around $10 a share, I think this is pretty good investment but I would not pay more than $10.50 - 11 a share.

    • Pretty close to buying at NAV. Its 9.62 at year end. Assume a minor uptick for Q1 and toss the divvy in...

      Says "buy" in my book.

 
BKCC
9.12-0.14(-1.51%)Jul 7 4:00 PMEDT