HERCULES CAPITAL - INVESTING IN TECH AND BIO BUSINESSES.
Hercules Capital $HTGC+0.7% is a major business development company (BDC) that specializes in investing in technology and life sciences companies. Since its founding in 2003, the firm has invested more than $20 billion in over 650 companies, making it one of the major players in its sector. As a BDC, Hercules Capital is required to return at least 90% of its profits to investors in the form of dividends, avoiding income taxes, making it an attractive option for investors seeking a high dividend yield.
Benefits and structure of Hercules Capital
$HTGC+0.7% focuses on smaller, high-risk investments, some of which may end in failure. Still, enough of these investments have proven successful to offset any losses. The company has a strong market position due to its diversification and equity positions in various sectors, particularly in the technology and life sciences sectors.
Dividend strategy
$HTGC+0.7% is known for its generous dividend policy. It currently offers a quarterly dividend yielding 8.7%, which is well above average. Additionally, due to volatile cash flows that are closely tied to unpredictable technology stock prices, the company provides a supplemental dividend. This strategy not only stabilizes earnings, but also increases total return for investors. If the supplemental dividend remains unchanged, investors can achieve a total return of up to 10.3%, making Hercules Capital a very attractive investment.
$HTGC+0.7% is a robust investment opportunity for those seeking a high dividend yield and with an appetite for the risk associated with the technology and life sciences sectors. The company offers not only a stable quarterly dividend, but also the potential for higher earnings through additional dividends.
The fall is huge in one day. The dividend is also quite high. It may be great for stock holders to possibly buy in, but I'm definitely not going to start a new position. From the banking sector, I'm still holding only $JPM+1.5%:)