Horizon Technology Finance (HRZN) has a current dividend yield of 10.7%. It is one of 416 stocks with a 5%+ dividend yield. You can see the full list of established 5%+ yielding stocks by clicking here. Horizon’s 10%+ yield towers above most other stocks. The S&P 500 Index, on average, offers just a 2% dividend yield. With a yield of nearly five times the S&P 500 average, Horizon has lots of appeal for income investors. Not only does it have a very high dividend yield, but it also makes its payments each month. Horizon is one of only 29 stocks with a monthly dividend. You can see the entire list of all 29 monthly dividend stocks by clicking here. Horizon’s yield nearly tops the list. It is the second-highest yielding stock on the list of 29 monthly dividend payers, behind only Prospect Capital (PSEC). This article will discuss why Horizon could be an attractive high-yield stock.
Business Overview
Horizon is a Business Development Company, or BDC. These are companies that make investments in privately-held companies. Horizon is a ‘venture lending’ company, meaning it operates similarly to a venture capital firm, except that it makes loans, instead of equity investments. It provides debt financing to early-stage companies across four industry groups:
- Life Science
- Technology
- Healthcare Information & Services
- Cleantech
Life science companies primarily include biotechnology, medical devices, and specialty pharmaceuticals. Technology investments are typically made in cloud computing, wireless communications, cyber security, data analytics and storage, internet, software, and more. Healthcare information includes diagnostics, medical records, and patient management software providers. Lastly, the Cleantech segment is made up of investments in renewable energy, such as alternative fuels, energy efficiency, green building materials, and water technology. A breakdown of Horizon’s portfolio by industry and geography is as follows:
