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Fidus Investment 
Financial services / Business development company
🔥 Video Insights
Fidus Investment shares remain under pressure, recently hovering around the mid-teens, well below prior highs. The weakness has caught income investors’ attention. Earnings have stayed relatively solid, with net investment income generally covering the base dividend, and margins remain healthy for the sector. Revenues have been stable, supported by a predominantly first lien portfolio and floating rate exposure.
Dividends have grown over recent years, with periodic supplemental payouts boosting total shareholder returns. However, the market is cautious. Concerns include potential credit deterioration, pressure from higher interest rates on portfolio companies, and the broader risk of a late credit cycle. Rising non-accruals could quickly change the story.
Value investors may see an attractive yield and reasonable coverage, while skeptics will focus on cyclical risk. A recovery is possible if credit quality holds and income remains stable. This review is for informational and educational purposes only, not a financial advice.