Broadcom named strategic vendor for Walmart virtualization solutions
Fidus Investment Corp (NASDAQ:FDUS)'s stock reached a 52-week high this week, hitting $21.32, signaling a period of robust performance for the company. According to InvestingPro data, the company maintains an impressive 11.4% dividend yield and has maintained dividend payments for 14 consecutive years. This milestone reflects a significant uptrend from the previous year, with the stock delivering a 24.4% total return over the past 12 months. Investors have shown increased confidence in FDUS, buoyed by the company's strategic initiatives and strong financial results, including 19.6% revenue growth and an attractive P/E ratio of 7.7. The company's "GOOD" financial health score on InvestingPro and robust current ratio of 2.3 have collectively contributed to the stock's impressive climb to this new high-water mark.
In other recent news, Fidus Investment Corporation reported a robust growth in their Q3 earnings call. The company highlighted a 20% increase in its debt portfolio and a record interest income of $33.7 million. The net asset value also increased by 11.8% to $658.8 million. Adjusted net investment income saw a rise of 12.3% to $20.4 million, supporting dividends of $0.57 per share.
New investments for the quarter totaled $65.9 million, with the portfolio's fair value reaching $1.1 billion. In addition, Fidus secured a new SBIC license, providing access to an extra $175 million in debentures. Despite a slight decrease in the weighted average effective yield on debt investments to 13.8%, the company's liquidity remains strong with approximately $154.4 million available.
CEO Ed Ross anticipates an increase in M&A activity in Q4 2024 and an active investment quarter ahead. However, the company observed some credit migration issues and a slight increase in Grade 3 risk ratings. Despite these developments, Fidus remains optimistic about its equity portfolio and plans no major transactions in the near future.
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