Hercules Capital, Inc. (HTGC) — Dividend Yield, NAV & Valuation Analysis

HTGC · NYSE

$18.95 Stock Price
9.8% Dividend Yield
$2.6B Market Cap
$16.8 NAV
12.8% Premium / Discount
Quarterly Dividend Freq.
$1.86 Div. per Share/yr

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Overview

Hercules Capital is a leading BDC focused exclusively on venture debt financing for technology and life sciences companies. HTGC provides senior secured loans to venture capital-backed companies that are typically pre-profit or pre-revenue but have strong institutional backing. With a specialization in venture debt, Hercules offers a differentiated BDC investment with higher yield potential and unique exposure to innovation-driven growth companies.

Key Metrics

MetricValue
1-Year Total Return17.2%
3-Year Total Return42.5%
5-Year Total Return61%
Expense Ratio9.5%
Leverage Ratio1.35x
Portfolio Companies155
Total Assets$3.7B

Discount / Premium to NAV

Stock Price$18.95
NAV per Share$16.8
Premium / (Discount) to NAV12.8%
Implied per-share NAV gap$-2.15

The premium / discount to NAV compares the current stock price to the per-share net asset value of Hercules Capital, Inc.'s investment portfolio. A negative reading (a discount) means the market is pricing HTGC below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Hercules Capital, Inc. currently trades at a 12.8% premium to NAV.

Investment Strategy

Hercules Capital, Inc. focuses on venture debt, senior secured loans in the technology, life sciences, healthcare, climate tech sectors. The company targets middle-market companies and maintains a portfolio of 155 investments totaling $3.7B in assets.

Management

CEO: Scott Bluestein | Employees: 65

Suitability

HTGC is suitable for income-focused investors seeking quarterly dividend income with a 9.8% yield. The BDC's focus on venture debt provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.