Trinity Capital's 14% Yield Masks Underlying Risks

Trinity Capital paid a 14% monthly dividend in Q4 2025, backed by 102% net investment income coverage and a $68.7M earnings cushion. However, the company reported $64.3M in full-year 2025 realized losses from distressed debt conversions and 82.9% floating-rate portfolio exposure. Federal Reserve rate cuts compressed Trinity's effective yield from 16.4% to 15.2% year-over-year, but interest rate floors limit income decline. Share dilution from equity issuances increased shares despite record total net investment income.