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Trinity Capital Inc. (TRIN $14.59)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $60.90)
Q: Hello,
I would appreciate your views on TRIN for an investor seeking income as part of a diversified portfolio, and recommendations for alternatives to TRIN in the same broad category if you don't think that TRIN is an interesting investment.
I would appreciate your views on TRIN for an investor seeking income as part of a diversified portfolio, and recommendations for alternatives to TRIN in the same broad category if you don't think that TRIN is an interesting investment.
5i Research Answer:
**edited for error** TRIN is a small ($1.1B) alternative investment manager. It offers a very high dividend (13.6%) and a low valuation (7x earnings). But, it has a very high debt load and no growth. EPS this year will be lower than it was six years ago. 12-month cash flow was negative. The stock is down 3% in the last five years (cumulative). We would view it as too risky for an income investor. We would suggest BAM as a better, safer, alternative.