An investor more than triples their holdings in high-yield stock PennantPark Floating Rate Capital (PFLT), which has a 13.2% dividend yield.
Investor Sean Williams states that his holdings in the business development company (BDC) PennantPark Floating Rate Capital (PFLT) have grown by 242% since the beginning of the year. He believes that despite market concerns about BDCs, such as loan defaults due to economic weakness, PFLT's catalysts (e.g., high yield and monthly dividends) and the security of its loan portfolio (99% first-lien secured debt) make it valuable. PFLT currently trades at a 26% discount to its net asset value (NAV) per share. Furthermore, he anticipates that a war with Iran and Donald Trump's tariffs could lead to inflation, forcing the Federal Reserve to raise interest rates, which would benefit PFLT's net investment income (NII).
Source:Yahoo财经 · Source Link
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