Runway Growth FinanceNASDAQ: RWAY

THIS PRESS RELEASE CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE (7)(1) OF THE EUROPEAN MARKET ABUSE REGULATION (596/2014)

Runway Growth Finance is a specialty finance company that provides flexible capital solutions to late-stage and growth companies.

Runway Growth Finance Corp. (NASDAQ:RWAY) Q4 2023 Results Conference Call March 7, 2024 5:00 PM ET

Runway Growth Finance Corp. (RWAY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Runway Growth Finance focuses on providing capital to VC-backed late-stage growth companies that have reached a sufficient level of maturity where it makes sense to avoid equity dilution. While RWAY is a VC-focused BDC and currently provides a very high dividend yield of 12.6%, the underlying portfolio and leverage are structured in a very conservative manner. In this article, I explain why RWAY is a clear buy for investors, who seek high and stable dividend yield.

Runway Growth Finance is a finance company with a 12.6% dividend yield and consistent dividend payout growth. RWAY reported solid Q3 results, with a 62% increase in total investment income and a 52% increase in net investment income. The company has a healthy balance sheet and is expanding its loan portfolio, making it a good investment opportunity with growing earnings.

Runway Growth Finance Corp. (NASDAQ:RWAY ) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET Company Participants Greg Greifeld - Investment Adviser and Acting CEO Tom Raterman - CFO, COO, Secretary, Treasurer and Acting President Conference Call Participants Mickey Schleien - Ladenburg Melissa Wedel - JPMorgan Bryce Rowe - B. Riley Securities Erik Zwick - Hovde Group Vilas Abraham - UBS Operator Ladies and gentlemen, thank you for standing by, and welcome to the Runway Growth Finance Third Quarter 2023 Earnings Conference Call.

Runway Growth Finance is paying out a 13.1% regular dividend yield that's 123% covered by net investment income. The BDC is currently swapping hands at a 15% discount to NAV per share as of the end of second quarter of its fiscal 2023. NAV has been dipping, with the BDC also taking a conservative approach to new investments.

Business Development Companies (BDCs) have performed well during rate hikes, unlike REITs, due to their high yields. Runway Growth Finance is a lesser-known BDC that focuses on technology, life sciences, healthcare, and select consumer services. RWAY has a growing and diversified portfolio, a strong management team, a conservative balance sheet, and a high dividend yield of over 12%.