TriplePoint Venture Growth BDC (TPVG) Stock

No retirement portfolio can be totally "hands off." Some work will be required to maintain success. I am collecting income, but not piling deeper into this company. We look at why I'm not selling out, but not buying hand over fist.

I initially issued a sell rating on TriplePoint Venture Growth due to weak net investment income and questionable distribution coverage, but recent Q3 earnings show improvement. TPVG's portfolio strategy focuses on lending to venture capital-backed companies, with a diverse debt portfolio, but remains vulnerable to interest rates. The current dividend yield of 17.6% is attractive for income investors but comes with additional risks compared to peer BDCs.

TriplePoint Venture Growth offers a high dividend yield but has a risky portfolio and poor net asset value performance, making it a less attractive investment. TriplePoint focuses on tech and venture growth stage companies, which increases potential returns but also elevates risks, especially in a high-interest-rate environment. The company's net asset value has declined consistently, and its high non-accruals and writedowns suggest ongoing financial issues within its portfolio.

TriplePoint Venture Growth has faced headwinds, cutting its dividend by 25% and underperforming peers in the BDC sector the past two years. TPVG's latest earnings showed missed estimates, declining portfolio value, but also some positive signs such as new commitments and reduced leverage. While TPVG's dividend is currently covered, risks of an additional cut remain due to declining portfolio value and potential economic downturns.

TriplePoint Venture Growth BDC stock price plummeted 7% to a new 52-week low after worse-than-expected Q2 results. TPVG realigned its dividend with lower net investment income, resulting in a 25% cut to $0.30 per share per quarter. Ongoing investment losses led to a QoQ drop in net asset value, causing TriplePoint stock to sell at an 18% discount.

TriplePoint Venture Growth stock dropped after its Q2 2024 results. TriplePoint Venture's distribution cut was to blame. With its equity issuance window closed, TPVG has a whole host of challenges to overcome, and the new distribution looks unsustainable.

TriplePoint Venture Growth (TPVG) operates as a BDC focusing on venture capital backed companies with a high dividend yield of 14.7%. TriplePoint Venture continues to underperform other peer BDCs, with non-accrual rates increasing and distribution being cut by 25% as of the latest Q2 earnings. Despite trading at a discount to NAV, TPVG's poor performance in NII and portfolio value decline warrant a sell rating.

TriplePoint Venture Growth (TPVG) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Black sheeps are misunderstood vs. the rest of the herd. So is TriplePoint in the sea of BDCs. We take a deeper and closer look at their fundamental health. If you just use one measure for an entire sector, you miss countless opportunities.