Fidus Investment: Is Mr Market Sleeping On This ~13% Yield?
Fidus Investment is well-prepared for upcoming market volatility with a defensive portfolio and a higher proportion of fixed-rate debt investments. FDUS's dividend coverage is solid, with potential for growth and additional distributions, offering an attractive yield even in a worst-case scenario. The company's valuation is compelling, though it tends to trade at a discount to NAV, which could limit its growth prospects but presents an attractive entry point.
2 High Yield BDCs With One Of The Lowest Debt Profiles
The outlook for BDCs is not that bright, especially for those names that have chosen risk-seeking strategies. The headwinds include lower interest rates, increased corporate distress, and inactive M&A and capital markets. However, just as in any asset class or sector, there are exceptions.
Fidus Investment Q2: Yet Another Quarter Which Confirms The Bull Case
Fidus Investment just reported its Q2, 2024 earnings. By glancing over the results, the immediate reaction could be negative. Yet, if we dissect the underlying financials in a more detailed manner, we will notice multiple reasons why it makes sense to remain bullish.
Fidus Investment Corporation (FDUS) Q2 2024 Earnings Call Transcript
Fidus Investment Corporation (NASDAQ:FDUS ) Q2 2024 Earnings Conference Call August 2, 2024 9:00 AM ET Company Participants Jody Burfening - Investor Relations Edward Ross - Chairman, Chief Executive Officer Shelby Sherard - Chief Financial Officer Conference Call Participants Bryce Rowe - B. Riley Robert Dodd - Raymond James Mickey Schleien - Ladenburg Paul Johnson - KBW Operator Good day and welcome to the Fidus Second Quarter 2024 Earnings Conference Call.
Fidus Investment: Q2 Earnings Reinforces Strong Cash Generation To Support Distribution (Rating Upgrade)
Fidus Investment operates as a BDC focusing on lower middle market companies, offering a high dividend yield of 14.2% that is well-supported. Portfolio strategy emphasizes risk management, with diverse investments and strong underwriting leading to improved non-accrual rates. Net investment income covers the base distribution by a large 132%. As a result, a supplemental distribution of $0.14 per share has been issued.
Fidus Investment (FDUS) Q2 Earnings Match Estimates
Fidus Investment (FDUS) came out with quarterly earnings of $0.57 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.62 per share a year ago.
Fidus Investment: The Case Has Become More Attractive After Q1 2024
On a YTD basis, Fidus Investment has delivered positive total returns, but slightly underperformed the BDC index. This is mostly related to the FDUS ETF's defensive characteristics, which decrease the beta profile, thus making it less sensitive to systematic price surges in the BDC space. Looking at the Q1 2024 earnings dynamics, we will notice mixed dynamics.
Fidus Investment: 9% Covered Yield, Growth And Special Dividend Potential
Fidus Investment Corporation has a reputation for distributing large special dividends to shareholders. The company's core dividend pay-out ratio in Q1 was below 100% and its net asset value remained stable. Fidus Investment's equity portfolio is performing well, making it a compelling value proposition for passive income investors.
