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Stock impact report

Advanced Flower Capital: The 7.5% Dividend Yield Haunted By The Specter Of Legacy Loans [Seeking Alpha]

Advanced Flower Capital Inc. (AFCG) 
Company Research Source: Seeking Alpha
AFCG's dividend yield stands at 7.5%, but the payout has been repeatedly cut and is not covered amid falling interest income, rising credit losses, and negative distributable earnings. Cannabis loans comprise the bulk of the portfolio, with 32.6% on nonaccrual, driving a 40% year-over-year decline in interest income and a 51% rise in credit reserves. JillianCain/iStock Editorial via Getty Images Advanced Flower Capital's ( AFCG ) transformation from a lender to the cannabis industry to a business development company ("BDC") comes with insufficient dividend coverage, falling interest income, and a deep discount to book value. The security completed its This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than f Show less Read more
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