#5 - PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT)
Moving away from REITs brings us to another popular category of high-paying dividend stocks, business development companies (BDCs). And the particular BDC we’re looking at is PennantPark Floating Rate Capital (NASDAQ:PFLT).
PennantPark invests in small companies that present opportunities for growth. Evaluating the prospects of small companies adds a risk premium to PFLT stock. However, the company has a dedicated team of analysts that allow the company to deliver a higher rate of return on successful investments.
And as its name implies, the company has the ability to command higher interest rates as interest rates climb. That may drive up the company’s revenue as interest rates trend higher. So far in 2022, the company’s revenue is up 26% on a year-over-year basis with earnings up approximately 19%.
PFLT stock currently carries a dividend yield of 10.6% with an annualized payout of $1.14 per share.
About PennantPark Floating Rate Capital
PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. It primarily invests in the United States and to a limited extent non-U.S.
Read More - Current Price
- $11.10
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.00 (8.1% Upside)
