I have posted on this security at least twice before and both times praising the company and the management. Yesterday TCAP blew the doors off with almost a 50% increase in earnings and that in an economic environment which is less than great. They did it with savvy investment selections and again conservative fiscal management. Garland Tucker and his team just keep doing almost everything right. They also reported a very nice INCREASE in their dividend from 44 cents to 47 cents per quarter and at yesterday's closing price that is around 11.5%.
Do not go out and rush and buy it today because I expect you will see a move up in price with these earnings. TCAP is known as a micro cap basically and is generally beneath the radar of the big investment houses and all the talking heads in the media so they are not well known. Based in Raleigh NC people there know them however and knew Mr. Tucker before he started this Business Development Company and it was clear he would steer this company to success and nice profits for his shareholders.
If you have interest in a company that never cut their dividend during the financial problems three years ago and is almost as solid a performer as a utility TCAP needs to be considered for your portfolio. No, do not run out and use half your portfolio on this stock, but 5% would not be too risky in my opinion. Look for a pullback below $16 and you will get it again when Europe announces another bad event and then buy.
I do not own TCAP either long or as an option.
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