Buoyed by capital gains, Raleigh investment firm Triangle Capital boosted its dividend even though its net investment income fell 10 percent in the second quarter.
The company raised its quarterly dividend five cents per share, from 54 cents per share to 59 cents per share. That boosts its annualized distribution to $2.36 per share.
CEO Garland S. Tucker III, in a statement, credited the “significant realized capital gains” enjoyed by the business for the increased dividend. The company realized a $11 million gain from the sales of equity stakes in its portfolio businesses and a $700,000 gain from $30.3 million in loan repayments.
Triangle Capital makes loans to mid-sized, privately held businesses and also takes a minority ownership stake in those businesses.
Triangle Capital released its second-quarter results after the markets closed Wednesday. Earlier in the day, its shares rose 4 cents to $26.56. Its shares have fallen 3 percent this year.
The company’s net investment income totaled $14.7 million, or 53 cents per share, down from $16.3 million a year ago.
Triangle Capital ended the quarter with $79.6 million in cash and another $133.7 million in borrowing capacity under its $165 million credit facility.