HCXZ ETF

Hercules Capital's valuation corrected at the beginning of the month due to economic concerns, but second-quarter earnings were strong. The BDC focuses on technology, life sciences, and renewable technology industries, with a debt portfolio valued at $3.41B in Q2'24. Portfolio and income trends are positive. Hercules Capital delivered 9% Y/Y NII growth in Q2'24.

Hercules Capital released record results for the second quarter, showing strong investment originations and healthy dividend pay-out ratio. Despite being expensive with a 63% premium to net asset value, Hercules Capital is considered a deep-value BDC buy. The market chaos last week created selling pressure on Hercules Capital, but the BDC remains a solid investment with high dividend stability.

Hercules Capital is a business development company that provides venture capital to fledgling life science businesses and technology start-ups. Hercules Capital offers a standard distribution plus a supplemental dividend at the moment.

Hercules Capital is a strong performer among venture-capital focused Business Development Companies in the Technology & Life Sciences sectors. The company reported strong Q1 earnings, with double-digit growth in net investment income and total investment income. Hercules Capital has outperformed its peers in terms of growth, NAV, and dividend coverage, leading to a higher premium on its share price.