Triangle Capital Corp (TCAP) is a business development company headquartered in Raleigh NC. Business development companies invest capital, either borrowed or from it's investors in start up or first generation privately owned companies that management believes have opportunity to grow. Basically venture capital investments. There are a couple dozen of these BDC's in America, most of which invest in medium to larger cap companies. TCAP however invests in smaller to medium sized business sectors with an emphasis on the Southeast US. TCAP has done very well operating in areas it knows best and has rewarded it's shareholders with a nice stream of dividends and capital gains as well.
The current dividend of 42 cents per quarter nets the investor about a 9.5% return. Add in the fact that even during the recent economic downturn TCAP did not reduce their dividend, but actually raised each year and kept right on paying. As I said these people know what they are doing. The team who runs TCAP is good, but the key here is the CEO Garland Tucker III who really knows how to pick good investments. I have followed this company ever since it's founding in the early 2000's and have admired their work ever since.
One note. If you decide to purchase their stock and want cash dividends you will need to opt out of their automatic dividend reinvestment plan. BDC investments are an excellent vehicle for dividends and capital gains in early economic recoveries and TACP stock, despite having moved up recently is still likely a good buy at this point. Note that TCAP is not a qualified dividend for US tax purposes.
I do not own and have never owned TCAP. As a trader TCAP offers no options and therefore is the reason I have not invested here. However for the long hold investor this looks like a good purchase.
Atlantic Power (AT) is an unknown stock that just recently moved it's headquarters to Boston from Canada, but still is considered a Canadian domiciled company for tax purposes. . It also only in the past year began trading on the NYSE. This is another stock I have followed for over 5 years and think it is an excellent investment opportunity. AT does business in power generation. Generally smaller operations such as biomass, natural gas, hydro, and pulverized coal. They do this under long term purchase contracts with larger utilities. Note one of these is a biomass project under development in Sanford NC. AT has been doing this business for awhile and knows what they are doing. I would expect their business to continue to grow since many states in this country are requiring "renewable" energy as part of regulated utility power generation.
Here is the sweet part, AT pays currently just over a 7.0% dividend annually and pays it in monthly installments. The opportunity for capital gains is limited, but how can you go wrong with such a nice payout.
I do not own and have never owned AT. Again as a trader AT never had options up until the past year and due to the small volume of trading does not offer suitable trading for me. However I recommend one take a look at this stock for sustained dividend payout. Note that as a Canadian corp. you are subject to a 15% immediate withholding tax which can be recovered when you file US returns.
Finally let me revisit Cenovus Energy, which I recommended back on February 3. CVE has moved up to from then around $32 to now around $38. Depending on oil prices it might back off some here, or later in the fall. But I again highly recommend this stock for those looking for an excellent buy long term. McDep, an oil valuation company, has again recommended the purchase with a 2020 price of around $150. Anyway you see it that is a great return if so and I concur.
I do not own CVE, but plan on purchasing options sometime after this posting.
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