Hercules Capital Premium to NAV Compresses to 30% From 72% Peak
Hercules Capital is trading at a 30% premium to net asset value, down from a 72% premium in 2024, as sentiment around technology-focused business development companies compresses despite strong dividend coverage and low nonaccruals.
Hercules Capital is trading at a 30% premium to net asset value, down from a 72% premium in 2024, reflecting compressed investor sentiment around technology-focused business development companies. The company pays a 12.1% dividend yield, composed of a $0.40 base quarterly dividend and a $0.07 supplemental quarterly dividend.
The base dividend was covered at 120% by first-quarter net investment income. Portfolio credit quality remains robust, with nonaccruals at fair value representing just 0.1% of the total investment portfolio as of the end of the first quarter.
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