SLR Investment Corp

SLRC

Market cap $880M

SLR Investment Corp. (NASDAQ:SLRC) offers a dividend yield of roughly 10.8% at current prices.

Currently, BDCs provide very high-yield opportunities. The fact that additional interest rate cuts are unlikely to happen this year should theoretically support the existing levels. Yet for most BDCs, the damage has already been done.

I see compelling value in floating-rate preferred shares and baby bonds, especially as credit spreads widen and many now trade at discounts to call value. Recent market volatility and higher interest rates have created attractive entry points in select REITs, BDCs, preferred shares, and baby bonds. I've allocated a significant portion of my portfolio to preferred shares and baby bonds in March 2026.

SLR Investment remains a hold as growth catalysts are lacking and earnings remain flat despite an attractive 21% discount to NAV. SLRC's portfolio is resilient, with no non-accruals and 94% in first lien senior secured loans, but net investment income does not cover the current dividend. Elevated interest rates suppress SLRC's growth potential and portfolio expansion, with limited new investment activity and a rising debt-to-equity ratio.

Building a sustainable passive income stream is like building muscle. It requires balance and discipline. Market fears around private credit and banking regulations have created mispricing in certain assets that are fundamentally sound. We discuss our top bargain picks offering up to 11% yields.

This high-yield sector is being taken to the woodshed by the Wall Street spreadsheet jockeys this year.

Compass Point is making a decisive call on the mortgage finance sector, initiating coverage on UWM Holdings Corp.

I focus on 65 high-yield, cash flow-positive "Dividend Dogs" in articles posted in January and February, emphasizing safety and value based on free cash flow yield exceeding dividend yield. Analyst targets suggest potential net gains of 19.72% to 110.60% for the top ten picks by February 2027, with an average estimated return of 36.04% on $10k invested. 47 out of 65 stocks meet the "safer" criteria, with annual dividends from $1k invested exceeding single share prices, and all are currently fair-priced.

SLR Investment Corp. (SLRC) Q4 2025 Earnings Call Transcript

SLR Investment (SLRC) came out with quarterly earnings of $0.4 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.44 per share a year ago.