Trinity Capital: Despite Risks, 14% Yield Worth Considering
Trinity Capital stands out in the BDC space for its ~14% dividend yield, niche growth strategy, internal management, growing net investment income and rising book value. However, it faces risks, including relatively low first lien loans, relatively low floating rate debt, interest rate sensitivity and investment style. This report reviews all of the above and then concludes with my strong opinion on investing.
Worried About Rate Cuts? 2 BDCs Best Positioned For The Storm
Hercules Capital and Trinity Capital are best positioned among BDCs to sustain base dividends amid possible lower interest rates. Both HTGC and TRIN benefit from strong fundamentals, investment-grade credit ratings, robust liquidity, and internally managed structures, supporting dividend stability. Contractual interest rate floors and NAV premiums provide HTGC and TRIN with defensive advantages over peers facing greater earnings declines from rate cuts.
Trinity Capital: Strange Dip Opens Up 14% Dividend Yield Opportunity
Trinity Capital has dipped by just over 11% from its near-term peak, expanding its fully covered dividend yield to 14%. The BDC is pushing ahead with portfolio growth, with its total debt investments at cost valued at $2.03 billion at the end of the third quarter, up 8.5% sequentially. NII downside from Fed rate cuts will be limited, due to a majority of loans being embedded with interest rate floors, and with 40.6% of TRIN's outstanding borrowing at a floating rate.
Trinity Capital Inc. (TRIN) Q3 2025 Earnings Call Transcript
Trinity Capital Inc. ( TRIN ) Q3 2025 Earnings Call November 5, 2025 12:00 PM EST Company Participants Ben Malcolmson - Head of Investor Relations Kyle Brown - CEO, President, Chief Investment Officer & Director Michael Testa - Chief Accounting Officer Gerald Harder - Chief Operating Officer Conference Call Participants Casey Alexander - Compass Point Research & Trading, LLC, Research Division John Hecht - Jefferies LLC, Research Division Paul Johnson - Keefe, Bruyette, & Woods, Inc., Research Division Finian O'Shea - Wells Fargo Securities, LLC, Research Division Sean-Paul Adams - B. Riley Securities, Inc., Research Division Christopher Nolan - Ladenburg Thalmann & Co. Inc., Research Division Presentation Operator " Ben Malcolmson Head of Investor Relations " Kyle Brown CEO, President, Chief Investment Officer & Director " Michael Testa Chief Accounting Officer " Gerald Harder Chief Operating Officer " Casey Alexander Compass Point Research & Trading, LLC, Research Division " Compass Point Research John Hecht Jefferies LLC, Research Division " Jefferies LLC Unknown Analyst " Paul Johnson Keefe, Bruyette, & Woods, Inc., Research Division " Keefe, Bruyette, & Woods Finian O'Shea Wells Fargo Securities, LLC, Research Division " Wells Fargo Securities Sean-Paul Adams B.
Trinity Capital Inc. (TRIN) Q2 2025 Earnings Call Transcript
Trinity Capital Inc. (NASDAQ:TRIN ) Q2 2025 Earnings Conference Call August 6, 2025 12:00 PM ET Company Participants Ben Malcolmson - Head of Investor Relations Gerald Harder - Chief Operating Officer Kyle Steven Brown - CEO, President, Chief Investment Officer & Director Michael Testa - CFO & Treasurer Ronald Kundich - Chief Credit Officer Conference Call Participants Casey Jay Alexander - Compass Point Research & Trading, LLC, Research Division Christopher Whitbread Patrick Nolan - Ladenburg Thalmann & Co. Inc., Research Division Douglas Michael Harter - UBS Investment Bank, Research Division John Douglas Hecht - Jefferies LLC, Research Division Paul Conrad Johnson - Keefe, Bruyette, & Woods, Inc., Research Division Sean-Paul Aaron Adams - B. Riley Securities, Inc., Research Division Operator Good afternoon.
Trinity Capital (TRIN) Surpasses Q2 Earnings and Revenue Estimates
Trinity Capital (TRIN) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.51 per share a year ago.
Trinity Capital: 14% Yield To Buy Now
TRIN is one of the two venture capital BDCs that I identified in 2024 as reasonable candidates for durable income portfolios. Since then, TRIN has delivered ~17% in total returns. Currently, the BDC trades at a premium of ~11%.
Trinity Capital: A Top-Tier Investment Play Offering A 14% Dividend Yield
Attractive 14% dividend yield, making TRIN ideal for income-focused investors. Strong Q1 results, with record NAV of $833 million and 30% YoY growth in total investment income. High portfolio quality, with 99.1% of loans performing and minimal non-accrual exposure (0.9% of portfolio).
Trinity Capital: The 14% Yield Looks Sustainable
Trinity Capital offers a 14% dividend yield, supported by strong net investment income growth and a consistently covered dividend, making it attractive for passive income. The BDC's portfolio quality is solid, with a low non-accrual ratio (0.9%) and steady loan origination, distinguishing it from peers facing credit issues. Valuation is reasonable with a 12% NAV premium and a Price-to-NII ratio below peers, justifying a 'Buy' rating, despite not being the absolute best in payout metrics.
Trinity Capital: Still A Solid Dividend Stock
Trinity Capital's portfolio risk rating remains stable at 2.9, with improving asset quality and reduced watchlist exposure despite sector headwinds. The company's 14%+ dividend yield is fully covered by net investment income, with low reliance on PIK income and potential for earnings growth. TRIN is effectively managing macro risks, including tariffs and rising credit concerns, through proactive portfolio oversight and prudent risk management.
Trinity Capital: Solid Q1 Earnings Warrants Upgrade
Trinity Capital's price has decreased over the last year, causing it to now trade at a more attractive valuation. TRIN's diverse portfolio, primarily in floating rate investments, benefits from higher interest rates, though risks remain if rates stay elevated. Q1 2025 earnings showed improvements with net investment income of $0.52 per share and increased total investment income, despite higher operating expenses.
Trinity Capital, Inc. (TRIN) Q1 2025 Earnings Call Transcript
Trinity Capital, Inc. (NASDAQ:TRIN ) Q1 2025 Results Conference Call May 7, 2025 12:00 PM ET Company Participants Ben Malcolmson - Head, IR Kyle Brown - CEO, President, Chief Investment Officer & Director Michael Testa - CFO & Treasurer Gerry Harder - COO Ron Kundich - Chief Credit Officer Conference Call Participants Casey Alexander - Compass Point Cory Johnson - UBS Christopher Nolan - Ladenburg Thalmann Paul Johnson - KBW Sean-Paul Adams - B. Riley Securities Operator Good morning.
