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PennantPark Investment Corporation (PNNT): A Steady Performer in the BDC Space

PennantPark Investment Corporation (NYSE:PNNT) is included among the 11 Best BDC Stocks to Buy Now.

Image by Steve Buissinne from Pixabay

PennantPark Investment Corporation (NYSE:PNNT) is a business development company that invests in mid-sized firms — the kinds that typically don’t receive much attention from traditional banks. Because of that, it’s often able to secure higher returns on the loans it issues. By the end of June, marking the close of its fiscal third quarter, the company said its debt investments were pulling in an average yield of about 10.4%.

What really sets PennantPark Investment Corporation (NYSE:PNNT) apart, though, is how its portfolio is built. Nearly every loan it makes — roughly 99% — comes with a variable rate. That worked out perfectly when the Federal Reserve started hiking interest rates from early 2022 through mid-2023 to fight inflation. As rates climbed, PennantPark’s returns jumped more than five full percentage points. Now that the Fed has started easing up, it’s doing so at a slow and steady pace, which has allowed the company to keep earning strong yields across its loan book.

PennantPark Investment Corporation (NYSE:PNNT)’s monthly dividend policy is also its strengths. Where a lot of companies offer dividends on a quarterly basis, PNNT pays out every month, which makes it one of the best dividend stocks in the BDC sector. Currently, it offers a monthly dividend of $0.08 per share and has a dividend yield of 14.66%, as of October 5.

While we acknowledge the potential of PNNT 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 PNNT 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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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