RE BDCs. There have been a few posts about BDCs (selling them, some holds) so here's my take. I sold off what I thought were my weaker BDCs this year.
TCPC (Feb), TPVG, FSK, HRZN (Aug) and MSDL, PFLT (Sept). TCPC, TPVG & HRZN all had payback numbers of >100% and other capital gain. Like most have said, I didn't want to lose anymore profits back. I am with you on that, for these BDCs.
However, I am keeping the rest of my stable for now. I bought BDCs for income and that's still how I think of them today. They bring me income. Income that during the accumulation stage (2018-2021, retired) that I invested in other standard DGI stocks. Income during the retirement phase (2021-present) that I now use as my "paycheck".
HTGC, GAIN, GLAD & TSLX are all part of my 2018 purchases. Paybacks range from 72% to 103%. TRs range from 100% to 156%. I am ok giving "some" gain back. I have enough gains to feel comfortable and I am really after their income. I think they are top quality BDCs and I will just watch month-to-month, and review their quarterlies carefully as they come out.
CGBC & OBDC are kind of middling. Paybacks 53% & 25%, TRs 48% & 15%, so I have already lost a bit of gain on these, but I am prepared to keep and monitor closely.
The rest, ARCC, FDUS, GBDC & BSXL are fairly new so will be on a short leash, but I like their histories and so will keep and watch closely.
I will not hesitate to sell out of any of these if I sense real danger (other than rates decreasing), but for now I will follow closely and collect the monthly income. I do not DRIP, so the income they provide pays my bills and any part not used gets reinvested in something else I feel is best at the time of reinvestment.
Good luck to us all! Happy Friday! Tho that means pretty much nothing to me since 2021 :-)
Oh, I forgot MAIN, which I almost exclude from my BDC basket, because it was bought prior to the basket's creation, and I bought it because I actually think of it more like a DGI stock. MAIN payback 61%, TR 147%, 15 year dividend increase streak and Top#4 holding in my equity portfolio. |
