Horizon Technology: The Dividend Is No Longer Supported
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Horizon Technology Finance (HRZN) faces challenges with poor dividend coverage, declining net investment income, and high non-accrual rates, leading to a sell rating. The company's focus on life sciences and healthcare, along with a small portfolio, makes it vulnerable in high-interest rate environments. Despite a high dividend yield of 14.7%, a dividend cut is likely in 2025.
December 28, 2024 | 7:30 am
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Horizon Technology Finance is facing financial difficulties with poor dividend coverage and high non-accrual rates, leading to a sell rating. The company's focus on life sciences and healthcare, along with a small portfolio, makes it vulnerable in high-interest rate environments. A dividend cut is likely in 2025.
The article highlights significant financial challenges for HRZN, including poor dividend coverage and high non-accrual rates, which are critical for investors. The company's concentrated focus and small portfolio size increase its vulnerability, especially in high-interest rate environments. These factors contribute to a likely dividend cut in 2025, negatively impacting the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100