Last qtr div was raised back to .29 after the prior qtr cut of 2 pennies. Distributable income for the last qtr was .38. Why do you say they won't be able to cover the div for the rest of the year?
Earnings are not going to cover dividend payout for the rest of the year, so either TICC will have to cut the dividend or sell assets to pay continue the same dividend level. If they sell assets, NAV will decline and the stock price may decline with that NAV drop. I am not sure as you would say #$%$ management has up its sleeve. TICC is out of favor with analysts because of risky investment portfolio, CLO investments, and there are just other BDC's out there like ARCC that they like better.
joey, Totally different types of investments. Netflix is a Wallstreet darling, so all brokers push the stock. But once Netflix gets to a point which comes with a disappointment, well I feel sorry for those who get caught in that tumble down but I expect the same for the government funded Tesla. As to TICC they deal in financing debt and venture capital for many companies and shareholders get 90% of the interest they collect by an SEC rule. Netflix does not have that rule so other than the stock price increasing, that's it. TICC if managed correctly has the opportunity to deliver ROR on the price per share when the NAV increases and the dividend distribution. TICC spreads risk whereas Netflix depends on it's product line..., very different entities.
As owner of both PSEC and TICC IMHO owning both is a way to spread risk and cover more industries they each service. In time both should perform well and as long as they pay a dividend above 6% I am in. However, I would be selling covered call's if ever either got to a 1.1 factor to NAV in premium. But for now at some 80 cents on the dollar NAV both are a good buy.
Isn't the stock trading ex-dividend today, which would account for the steep drop. Those who have gotten the dividend were willing to sell it for less than they bought it for if they were to net a profit.
Also, on or after its ex-div date, OXLC may drop below 15. It dropped recently because of its SPO of 1.8M at 15.65. If one can buy so much than its SPO price, to me that will also be a good buy.
Now I have to readily admit that I had no idea what the heck I was talking about, I just quoted what the earnings release said verbatim. But for it to trade with a 19% discount, with a 16.41% yield while OXLC, managed by the same external management, selling with a 8% premium, 100% CLOs, with only a 15.8% yield, now I just wonder which one would be a better buy? I do own both and had doubled my TICC position at 7.01 today since its ex-div date would be this Friday (same for OXLC), with the 0.29 dividend, it will lower my cost basis to 6.72. To me it would be a worthy risk. Now after I said I may have indeed jinxed it. But from my experience, any stock that was priced under its fair value would soon correct itself.
According to their earnings highlight for Qtr ending at March 31, 2015, although the NII was only 21 cents/sh, but the CLO equity additional estimated taxable income was 0.17, which resulted in a core NII of 0.38. They also got refudend for the management incentive fee of 0.04, therefore the 0.04 did not get deducted from the 0.38 core NII, which explained the 0.29 dividend. While for the same quarter in 2014, the NII was 0.33, there was no CLO equity additonal estimated taxable income, and after deducting a 0.04 capital gain incentive fee, the core NII for that quarter was only 0.29.