TriplePoint Venture Growth BDC Corp. Declares Quarterly Dividend of $0.06 (NYSE:TPVG)

Key Points

• TriplePoint Venture Growth BDC declared a quarterly dividend of $0.06 per share, payable December 30 to shareholders of record on December 16. The dividend implies an annualized yield of approximately 4.9%.
• Dividend sustainability may be a concern: the current payout ratio is 86%, while analysts expect next year’s earnings of $0.84 per share versus an annual dividend of $0.92, implying a potential 109.5% future payout ratio.
• Analyst sentiment remains cautious, with four Hold ratings and two Sell ratings, an overall “Reduce” consensus, and a consensus price target of $5.25. TPVG recently reported quarterly EPS of $0.21, below the $0.24 estimate, despite revenue exceeding expectations.

TriplePoint Venture Growth BDC Corp. (NYSE:TPVG - Get Free Report) announced a quarterly dividend on Tuesday, August 4th. Shareholders of record on Wednesday, December 16th will be paid a dividend of 0.06 per share by the investment management company on Wednesday, December 30th. This represents a c) dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date is Wednesday, December 16th.

TriplePoint Venture Growth BDC has decreased its dividend by an average of 0.1%per year over the last three years. TriplePoint Venture Growth BDC has a payout ratio of 86.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities analysts expect TriplePoint Venture Growth BDC to earn $0.84 per share next year, which means the company may not be able to cover its $0.92 annual dividend with an expected future payout ratio of 109.5%.

TriplePoint Venture Growth BDC Trading Up 6.2%

Shares of TPVG opened at $4.91 on Thursday. TriplePoint Venture Growth BDC has a 12-month low of $4.39 and a 12-month high of $6.95. The firm has a market capitalization of $199.18 million, a P/E ratio of 4.63 and a beta of 1.28. The firm has a 50-day moving average price of $4.93 and a 200 day moving average price of $5.30.

TriplePoint Venture Growth BDC (NYSE:TPVG - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The investment management company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.03). TriplePoint Venture Growth BDC had a net margin of 46.77% and a return on equity of 11.54%. The company had revenue of $24.48 million during the quarter, compared to analysts' expectations of $22.88 million. Equities research analysts predict that TriplePoint Venture Growth BDC will post 0.95 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms have weighed in on TPVG. Piper Sandler dropped their target price on TriplePoint Venture Growth BDC from $5.50 to $5.00 and set a "neutral" rating for the company in a research report on Monday, July 13th. Weiss Ratings restated a "sell (d+)" rating on shares of TriplePoint Venture Growth BDC in a report on Tuesday, June 9th. Keefe, Bruyette & Woods reduced their target price on shares of TriplePoint Venture Growth BDC from $6.00 to $5.50 and set a "market perform" rating on the stock in a report on Thursday. Finally, Zacks Research upgraded shares of TriplePoint Venture Growth BDC from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. Four investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $5.25.

About TriplePoint Venture Growth BDC

TriplePoint Venture Growth BDC Inc is a closed-end management investment company externally managed by TriplePoint Capital LLC. The firm specializes in providing customized debt and equity financing to growth-stage, venture capital– and private equity–backed companies. Its financing solutions include senior secured loans, unitranche facilities, subordinated debt and selective equity co-investments tailored to support expansion, working capital needs and strategic initiatives.

Launched in September 2018 and listed on the New York Stock Exchange under the symbol TPVG, TriplePoint Venture Growth BDC leverages the deep industry expertise and established underwriting capabilities of TriplePoint Capital, a venture lender since 2003.

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