New Mountain Finance (NMFC) offers attractive total return potential and has been able to grow its dividend payments. NMFC stock is priced below net asset value and has upside potential in its Equity portfolio in a strong U.S. economy. The company has a 10% yield, covered by net investment income, and has a compelling risk/reward relationship. The author is ramping up exposure to NMFC due to its dividend growth and total return potential. NMFC is the second-largest BDC holding in the author's passive income portfolio. The author believes floating-rate BDCs remain attractive investment vehicles for passive income investors. NMFC has an attractive Equity component in its portfolio, which could allow for lucrative exits in a strong U.S. economy. New Mountain Finance focuses on the upper middle market and Senior Secured Lending. The company has a low amount of loan losses and has returned extra cash to shareholders. The author anticipates a drop in the pay-out ratio and expects NMFC to re-rate to a 10% premium to net asset value. The trajectory of inflation and the central bank's response to it will impact the investment thesis. NMFC has a strong outlook for portfolio income growth in 2024. The stock is presently available at a 2% discount to book value and pays a healthy, NII-covered 10% dividend yield. [88ad524a]