#6 - PennantPark Floating Capital (NASDAQ:PFLT)
If you’re a dividend-focused investor, PennantPark Floating Rate Capital (NASDAQ:PFLT) is a company that may fit your investing style. PennantPark is a business development company (BDC) that offers a robust 9.5% yield and pays a dividend on a monthly basis.
Whenever you’re considering a BDC, you should understand the company’s underlying business. PennantPark predominantly invests in the first-lien secured debt of mid-market companies. This is the debt that would be paid first if a company files for bankruptcy.
What makes PennantPark even more attractive is that 100% of its debt carries a variable rate. This means as interest rates rise, so do the rates on the company’s secured loans.
Looking at the company’s fundamentals, PennantPark has an attractive forward P/E rating of just over 10x and it is expected to show growth in revenue and earnings over the next five years.
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
- $11.07
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.00 (8.4% Upside)
