Fidus Investment: Too Expensive To Buy Before Earnings (Earnings Preview)

FDUS remains a hold as recent price appreciation limits upside, despite strong Q1 results and robust dividend coverage. FDUS's portfolio is well-structured, with a significant first-lien debt focus and resilient software/IT exposure, supported by high switching costs and sponsor backing. NII growth of 22.5%, 151% regular DPS coverage, and minimal non-accruals underscore FDUS's superior performance versus BDC peers.