Dividend Hunter — October 2026 Newsletter

Summary

Q3 2026 closes with FS Credit Opportunities Corp (FSCO) and InfraCap Capital Equity Income Fund (ICAP) analysis, portfolio update (MRP replaces PAGP), and the 'Energy Fortress' special situation research teaser.

Details

Q3 Comes to a Close

The Dividend Hunter Q3 2026 edition, published just after quarter-end. Focus on tracking dividend income as the primary metric — account value follows. Solo 401(k) tracking resumed Q3 as the best quarter since tracking began in 2024. Starwood Property Trust (STWD) continues $0.48/share/quarter, payable October 15.

FS Credit Opportunities Corp (FSCO)

Structure: Closed-end fund launched November 14, 2022. $2.2B assets (95 portfolio companies), $1.0B market cap. 88% senior secured debt, 81% floating-rate. 68% private credit / 32% publicly traded debt. Debt-to-equity ratio 0.48. NAV discount: 26.4%.

Dividend growth: ~20% over three years despite early-2026 reduction. Yield on NAV: 10%; share-price yield: 13.6%. Current price: $5.24 (52-week low: $4.13 at 36% NAV discount).

Editor's position: Long FSCO.

Fitting DH Into Investor Life Stages

Three stages: 1. Portfolio growth (15+ years to retirement) — add capital + reinvest dividends 2. Income stream growth — reinvest most/all dividends from accumulated capital 3. Retirement income draw — take portion of dividends as income, reinvest the rest

Key metric: 10% average yield vs 4% recommended retirement draw — allows drawing income while still reinvesting.

InfraCap Capital Equity Income Fund (ICAP)

Structure: Launched December 28, 2021. Active management in large-cap dividend stocks + covered call options + 15-30% leverage. Current SEC yield: 3.54%. Actual yield: 10.7%.

Top holdings: NVDA (7.34%), GOOGL (7.05%), AVGO (6.55%), MRVL (5.84%), LMT (4.87%), KKR (4.64%), DHI (4.25%), LEN (3.97%), AMZN (3.85%), META (3.83%).

Dividend growth: $0.175/share (2022) → $0.25/share (current). Share price up 35% since Oct 2023; total return 73% with dividends reinvested. Expense ratio: 2.47% (0.80% management + leverage interest).

Editor's position: Long ICAP.

Portfolio Update

• Milrose Properties (MRP) replaced Plains GP Holdings (PAGP) in the portfolio (August 17 Stock of the Week)
• PAGP may still be worth holding for taxable-gain reasons
• Monthly USOI/SLVO trade: USOI winner for September, ~40% higher than SLVO

Energy Fortress — Special Situation Research

Upcoming research on U.S. energy independence dynamics: North America has crude, natural gas, pipelines, refining capacity, and capital for energy infrastructure buildout. AI data center electricity demand + global dependency creates an "energy fortress" investment thesis. Publication expected later this month.

Start Out Portfolio (DH Core Holdings)

• Hercules Capital (HTGC)
• InfraCap MLP ETF (AMZA)
• Kurv Technology Titans Select ETF (KQQQ)
• Rithm Capital Group (RITM)
• Virtus InfraCap U.S. Preferred Stock ETF (PFFA)

Gaps

Q3 solo 401(k) results not yet available. Energy Fortress research not yet published.