Wednesday, June 8, 2011


TICC Capital Corp (TICC: NASDAQ) - TICC is a closed end non-diversified management investment company. It invests in tech companies with market caps >$300 million in a variety of sectors including software, hardware, telecommunications and medical devices. This is why I like them, starting off with their (and most BCD's) most attractive element.

  • Dividend yield of 10.09
  • Revenues have increased since Q2 2009 (currently $9.8 million) and are expected to continue increasing including an estimated increase of $2.5 million by Q4 2011 which supports and will increase the dividend
  • Payout ratio of around 42%, a comfortable percentage that provides room for dividend increases or allows for flexibility should the company require funds immediately.
  • Dividend growth rate for past 5 years of 2.3%, not especially exciting however with an already high yield I like a more sustainable growth rate.
  • ROE and ROA around 20%, showing that TICC is able to utilize it's shareholders equity and assets effectively
  • No debt
  • Conservative payout ratio, dividend growth rate and no debt means they have cash on hand for expansion which could lead to the potential for growth and stock price appreciation in the future.