Exploring Hercules Capital’s (HTGC) Edge as a High-Yield BDC Dividend Stock

Hercules Capital, Inc. (NYSE:HTGC) is included among the 11 Best BDC Stocks to Buy Now.

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Hercules Capital, Inc. (NYSE:HTGC) is a financing firm based in California that lends mainly to fast-growing companies backed by venture capital or big institutional investors. Most of what it does involves senior secured loans across a range of industries, helping young businesses get the cash they need to scale.

Over the years, especially since 2018, Hercules Capital, Inc. (NYSE:HTGC) has steadily grown its net investment income. That says a lot about how well the team has managed both its loan book and its overall risk. As earnings have climbed, the company’s also made a point of passing that along to investors by raising its dividend on a regular basis.

What really sets Hercules Capital, Inc. (NYSE:HTGC) apart is how it handles its deals. The firm can tap into deep pools of capital, which gives it an edge, but it’s careful — it structures its loans with solid covenants to keep things in check. On top of that, it keeps close ties with the venture capital firms backing its borrowers. That kind of network often turns into repeat business, whether through refinancing deals or new introductions that come from those same VC connections.

Hercules Capital, Inc. (NYSE:HTGC) has paid regular dividends to shareholders for 79 consecutive quarters, which makes it one of the best dividend stocks to invest in. Currently, it pays a quarterly dividend of $0.40 per share for a dividend yield of 10.27%, as of October 5. In addition, the company also announced a $0.07 per share supplemental dividend.

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Disclosure: None.