Upcoming 3% To 4% Book Value Growth For This 9.2% Yielding BDC Positioned For Rising Rates

Q2 2018 BDC Reporting
Business development companies ("BDCs") will be reporting June 30, 2018, results this weeks including Hercules Capital (HTGC) and I will likely be making changes to my personal portfolio. My recent articles on THL Credit (TCRD), Ares Capital (ARCC), and Main Street Capital (MAIN) discussed potential changes to upcoming dividends:
TCRD: 13.2% Yield At Risk Of Upcoming Dividend Cut ARCC: 9% Dividend Yield Positioned For Rising Rates And Upcoming Special Dividend MAIN: This High-Yielding, Sleep-Well Investment Is About To Announce A Dividend Increase

As mentioned in the articles linked above, I have been purchasing additional shares of higher quality BDCs, especially given the oversold conditions driving higher yields. Many BDCs have been rallying over the last five months, likely for the reasons discussed in this and previous articles including:
Rising interest rates and portfolio yields Poorly managed BDCs taken over and turned around Recent insider purchases Relaxed regulations and tax reform Reasons to Buy HTGC: Superior positioning for rising interest rates Scalable internally managed cost structure Higher credit quality portfolio with potential NAV improvement/growth Portfolio diversification for VC-backed technology exposure Potential for strong dividend coverage supported by access to growth capital, including SBA leverage and issuing shares at a premium to NAV I purchased shares of HTGC on March 26, 2018, at an average... Read more