TriplePoint Venture Growth BDC Corp. [TPVG] Stock Forecast

TriplePoint Venture Growth is a BDC that provides financial assistance to companies in industries like e-commerce, entertainment, technology, and life sciences. The company has a robust financial position with a solid net asset value and total liquidity. The dividend yield is currently above 15% and has been well-covered, but there are concerns about the credit quality of TPVG's portfolio.

TriplePoint Venture Growth is an externally-managed BDC that invests in debt financing for high-growth companies. It currently pays a 15% dividend yield that's well-covered by net investment income. TPVG's portfolio quality has declined, and its NAV/share performance lags behind its peers, making it a less attractive investment option at present.

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TriplePoint Venture Growth is currently paying out a substantial 15.2% dividend yield. The BDC has enough spillover income to cover its base dividend for 2.6 quarters, with a year-end special payment also likely. A continued rise of loans on non-accrual status and payment-in-kind income against a high leverage ratio means TPVG will be more sensitive to possible rate cuts next year.

Mortgage REITs and BDCs had varying performances in Q3 2023, with agency mortgage REITs performing the worst and BDCs performing the best. Originator/servicer mREITs and RC outperformed their peers in terms of book value changes. Investors should focus on BDCs and preferred shares for long-term positions, as they generally have fewer dividend cuts.

Business Development Companies are an important part of the U.S. financial system, providing loans to private companies and offering high yields to investors. TriplePoint Venture Growth is a small BDC with a focus on venture lending, offering high yields but with higher risks due to problematic loans. Hercules Capital is a unique and well-performing BDC with exceptional underwriting and a strong track record, making it a good investment option.

TriplePoint Venture Growth BDC's high non-accrual ratio may deter passive income investors. However, the BDC's earnings show that it easily covered its dividend payout with net investment income, suggesting dividend sustainability. Despite the BDC's credit portfolio challenges, the stock is selling at net asset value, making it an attractive option for passive income investors.

TPVG's earnings growth continued in Q3 - NII, rose 13.3%, thanks to its floating interest rate debt investments. TPVG is undervalued vs. the BDC industry, on an earnings and NAV basis. Its top 2 rating tiers of companies held remained above 86% in Q3 '23.

Interest rates are soaring, the economy faces many challenges and the Federal Reserve remains aggressive in its campaign to stamp out inflation. Amid this uncertainty, investors are turning to dividend stocks for solid income during these worrisome times.

TriplePoint Venture Growth saw a surge in problematic loans in its portfolio in Q1'23 and Q2'23, which could lead to a dividend cut going forward. The BDC's poor loan quality and high non-accrual percentage raise concerns for dividend investors. Comparisons with rival Hercules Capital show that TriplePoint Venture is an inferior choice in terms of portfolio quality.

TriplePoint Venture Growth BDC Corp. is a US stock , located in Menlo park of Ca and trading under the symbol TPVG

4 stock analysts have 4 predictions with a medium analyst target price of $15.75. The lowest prediction is $13.5 and the highest is $18

TriplePoint Venture Growth BDC Corp. stock price is $10.7063 today.

Yes, TriplePoint Venture Growth BDC Corp. is a publicly traded company.