10 Best BDC Stocks To Invest In

07. TriplePoint Venture Growth BDC Corp. (NYSE:TPVG)

Number of Hedge Fund Holders: 7

TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) is a standout among business development companies (BDCs) due to its focus on growth-stage, venture-backed companies. Specializing in debt financing and equity investments, TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) provides customized financing solutions, including growth capital loans, secured loans, and equipment financing to companies in high-growth sectors such as technology, life sciences, and e-commerce. These sectors are known for their rapid expansion and innovation, making TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) well-positioned to capture lucrative opportunities in venture lending.

In its Q2 2024 earnings, TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) reported strong financial metrics, underpinned by significant growth in its investment portfolio. New debt commitments surged by 420% compared to the previous quarter, and funding activity grew by 186%, reflecting robust demand for venture debt financing. The company’s selective investment approach has led to a well-diversified portfolio, spread across high-potential industries like fintech, cybersecurity, and software. This strategic allocation enhances the company’s ability to generate solid returns, which are further supported by its equity positions and warrants in 94 portfolio companies. These warrant and equity positions bode well for long-term net asset value (NAV) appreciation, providing a significant upside for investors.

The company offers a quarterly dividend of $0.30 per share, which reflects a strong alignment with its earnings power and core portfolio yield. Even after a reduction from previous levels, this dividend remains attractive, especially in the current market environment where income-seeking investors value stable payouts. TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) focus on maintaining its dividend while prudently managing its leverage and liquidity makes it a compelling choice for dividend-focused investors.

Additionally, the company’s leverage ratio has improved significantly, dropping from 1.76x to 1.15x, indicating stronger financial health. TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) management has also reduced unfunded commitments from $205 million to $71 million, further strengthening its liquidity position. These moves not only provide flexibility for future investments but also enhance the company’s resilience in uncertain market conditions. Overall, TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) strong fundamentals, attractive dividend yield, and strategic positioning in venture growth financing make it a solid pick for investors looking for exposure to BDC stocks.