Chicago Atlantic BDC: Unique Cannabis Focused BDC With Potential
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Chicago Atlantic BDC (LIEN) is a unique BDC with a focus on the cannabis industry, holding 77% of its portfolio in cannabis-related debt. Despite a 22% price decline since inception, it offers a high dividend yield of 12.4%, supported by strong net investment income and a recent 36% dividend increase. The portfolio is diversified with 23% non-cannabis investments and benefits from senior secured first lien debt, reducing risk.
January 17, 2025 | 6:00 pm
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Chicago Atlantic BDC (LIEN) focuses on cannabis-related debt, with 77% of its portfolio in this sector. Despite a 22% price decline, it offers a 12.4% dividend yield, supported by strong net investment income and a 36% dividend increase. The portfolio is diversified with 23% non-cannabis investments and benefits from senior secured first lien debt, reducing risk.
The high dividend yield of 12.4% and recent 36% dividend increase are positive indicators for investors, suggesting potential for price appreciation. The focus on cannabis-related debt, while risky, is mitigated by diversification and senior secured first lien debt, reducing overall risk.
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