TriplePoint Venture Growth Declares Special Dividend; Street Sees 10% Upside

TriplePoint Venture Growth declared a special dividend of $0.10 per share, payable on Jan. 13, 2021, to shareholders of record at the close of business on Dec. 31, 2020.

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The special dividend represents a portion of TriplePoint Venture Growth’s (TPVG) estimated net capital gain income earned during the fiscal FY20.

The company declared distributions of $1.54 per share in FY20 reflecting a dividend yield of 12.3%.

The shareholders can either receive the dividend payment in cash or receive shares of common stock under the dividend reinvestment plan, the company said.

The FY20 dividend distribution brought the total cumulative distributions declared since its 2014 IPO to $10.06 per share.

The anticipated remaining undistributed net capital gain income along with the management investment company’s estimated undistributed taxable earnings from net investment income, of $10 million or $0.33 per share, as of Sep. 30, 2020, will trickle down into 2021, the company announced.

“The declaration of our third special distribution since our IPO highlights the powerful warrant and equity investment components of our returns and underscores TPVG’s differentiated business model.” said TriplePoint CEO Jim Labe.

Last month, JMP Securities analyst Devin Ryan resumed coverage of TPVG with a Buy rating and a price target of $13.

Ryan views the venture growth niche as “quite compelling”, stating that TriplePoint has competitive advantages around both its experience and sourcing network. (See TPVG stock analysis on TipRanks)

Ryan added that TriplePoint’s dividend yield exceeded that of Hercules Capital (HTGC) and Horizon Technology Finance (HRZN).

From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 2 unanimous Buys. The average analyst price target of $13.75 implies upside potential of close to 10% at current levels.