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MidCap Financial Investment Corp (MFIC) is an externally managed, publicly traded, closed-end, diversified management investment company.Its investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. As a Business Development Company, it predominantly invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, and in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies.The company was founded in 2004 and is based in New York City, New York.Three key data points gauge MidCap Financial or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.MFIC PriceMFIC’s share price rose 4.5% in the past year from $13.57 to $14.18 as of Wednesday’s market close.In the past 3 years, the company’s share price has rarely been less than $10.00 nor more than $16.26. It did, however, reach an all-time high of $72.60 back in June 2007.If shares trade in the range of $13.00 to $16.00 this next year, the recent $14.18 share price might grow to $15.00. Of course, MFIC shares could also drop about the same $0.82 estimated amount or more.My $0.82 price upside estimate is about $0.16 over the median of one year’s target prices projected by eight analysts tracking MFIC for brokers.MFIC DividendMidCap Financial Investment Corp has paid variable quarterly dividends since September 2004. The company’s most recent Q dividend of $0.38 was declared November 8th for shareholders of record December 10th with payout to come December 26th.The forward-looking annual dividend of $1.72 yields 12.13% per Wednesday’s closing price.MFIC ReturnsPutting it all together, a $2.54 estimated annual gross gain per share shows up by adding MFIC’s annual $1.72 dividend to the estimated price upside of $0.82, totaling that $2.54 gross gain.A little over $1000 buys 71 shares at Friday’s $14.18 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.11 per share out of the $2.54 gross gain to give us a net gain of $2.43 X 71 shares = $172.53 for about a 17% estimated net gain for the year.Furthermore, the $121.30 annual estimated dividend paid from $1k invested is over 8.5 times greater than the $14.18 single share price. By these numbers, MFIC may be an ideal financial dividend dog.Therefore, you might choose to pounce on MidCap Financial Investment Corp. It is a 20-year-old Quarterly dividend-paying business development company with a 20-year dividend record.The exact track of MFIC’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:Current Report: MFA Financial
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