Hercules Capital, Inc. (NYSE:HTGC) Declares Dividend Increase - $0.40 Per Share

Key Points

• Hercules Capital raised its quarterly dividend to $0.40 per share, up 471.4% from $0.07. Shareholders of record on August 11 will receive payment on August 18, representing an annualized yield of approximately 9.9%.
• The dividend appears covered by earnings, with an 80.4% payout ratio and analysts forecasting $1.99 in earnings per share next year against a $1.60 annual dividend.
• Hercules Capital shares rose 2.8% to $16.24 in mid-day trading. In its latest quarter, the company reported $0.48 EPS, narrowly beating estimates, while revenue increased 18.4% year over year.

Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) declared a quarterly dividend on Tuesday, July 28th. Investors of record on Tuesday, August 11th will be given a dividend of 0.40 per share by the financial services provider on Tuesday, August 18th. This represents a c) annualized dividend and a dividend yield of 9.9%. The ex-dividend date of this dividend is Tuesday, August 11th. This is a 471.4% increase from Hercules Capital's previous quarterly dividend of $0.07.

Hercules Capital has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 1 years. Hercules Capital has a payout ratio of 80.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Hercules Capital to earn $1.99 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 80.4%.

Hercules Capital Trading Up 2.8%

Hercules Capital stock traded up $0.45 during mid-day trading on Tuesday, hitting $16.24. The company's stock had a trading volume of 1,353,527 shares, compared to its average volume of 2,085,412. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.89 and a quick ratio of 1.89. The stock has a market cap of $3.04 billion, a price-to-earnings ratio of 9.17 and a beta of 0.79. The business has a 50 day moving average price of $15.66 and a 200-day moving average price of $15.89. Hercules Capital has a 12 month low of $13.70 and a 12 month high of $19.67.

Hercules Capital (NYSE:HTGC - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.01. The business had revenue of $134.94 million during the quarter, compared to analyst estimates of $141.39 million. Hercules Capital had a net margin of 59.85% and a return on equity of 16.05%. The company's revenue was up 18.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.45 earnings per share. As a group, analysts forecast that Hercules Capital will post 1.93 EPS for the current year.

Hercules Capital Company Profile

Hercules Capital, Inc is a specialty finance company organized as a business development company (BDC) that provides tailored debt financing solutions to high‐growth companies. Through its external management structure, Hercules Capital extends senior secured loans, subordinated debt and growth capital designed to support research and development, expansion initiatives and working capital needs. The firm primarily partners with venture capital and private equity sponsors to finance innovative enterprises across various developmental stages.

The company's investment portfolio is concentrated in technology, life sciences and sustainable and renewable technology sectors, reflecting its focus on industries with strong growth prospects and recurring capital requirements.

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