BlackRock TCP Capital Corp’s (TCPC) Portfolio Strength: Key Metrics Behind its BDC Success

BlackRock TCP Capital Corp. (NASDAQ:TCPC) is included among the 11 Best BDC Stocks to Buy Now.

BlackRock TCP Capital Corp’s (TCPC) Portfolio Strength: Key Metrics Behind its BDC Success

BlackRock TCP Capital Corp. (NASDAQ:TCPC) focuses on providing financing to mid-sized businesses that have solid track records and steady cash flow. Most of its financing comes in the form of senior secured loans, which helps protect its capital while generating steady returns through interest and lending fees. From time to time, it also takes small equity positions when the right opportunity comes along.

BlackRock TCP Capital Corp. (NASDAQ:TCPC)’s dividend history is stable enough to provide consistent income to shareholders. The company has paid uninterrupted dividends for 52 quarters and has a current quarterly payout of $0.25 per share. In addition, the company also offers supplemental dividends at regular intervals. The stock supports a dividend yield of 16.53%, as of October 5.

Lately, BlackRock TCP Capital Corp. (NASDAQ:TCPC) has been focused on cleaning up its portfolio and keeping risk in check. That means reducing exposure to loans that aren’t performing well, tightening credit standards, and shoring up its capital structure. The firm’s advisor, Tennenbaum Capital Partners, which is part of BlackRock, brings years of experience and plays an active role in fine-tuning investments. For BlackRock TCP Capital, the priorities remain the same: keep credit quality high, manage risk carefully, and stay compliant as a Business Development Company to continue rewarding shareholders.

While we acknowledge the potential of TCPC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TCPC and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Champions List: Top 15 Stocks to Buy and 11 Best Affordable Dividend Stocks to Buy Now.

Disclosure: None.