In the past some companies have increased in price, as "the market" became willing to pay a higher price (lower yield) for steady dividends. Price growth is enhanced by restricting secondary offerings, and always pricing them above net book value, rather than below book value. If you want to compare BDC's to "growth" companies, then chart total return with all dividends reinvested, and your BDC may be showing 12% growth compounded annually, which over the long term may exceed that shown by "growth" stocks. For this to work in the real world, you need to hold your dividend payers in an IRA, so that you aren't paying income tax on your "growth".
Sentiment: Strong Buy
Wantall... when looking at long term charts on BDC's you must keep in mind many charts don't reflect Total Return (divi+stock price change). Since BDC's are req'd to payout substantially all their income, there is no "reinvested" earnings that at typical company would have. Charting a BDC to most any other non BDC will dramatically show the difference. BDC growth comes from the deals they make and the leverage they use, plus the premium/disc over nav the market gives it. Long Psec..
Only if the dividend can not be covered by earnings. If the dividend can be sustained then the stock price should be fairly static with a low beta.
I search Canterbury Apartments Fort Wayne Indiana. With the amenities it could be split into independent living and regurlar housing buyring some of the cost consuming amenities and raising the renta. This could be done by contracting a independent contractor.
This good because the re acquisition fits my thoughts(from the last re purchase). That is--- if they collect enough re they could spin off a reit. Perhaps, I am dreaming. Bias long on RSO NYMT FSEC NRF and yes I am taking a bath.
Quick question...Are BDC"s strictly dividend plays? I notice long term charts for these, at least lately, are generally down. Does this mean that the large divi payments make it hard to sustain the long-term stock price?
Slick - stay with us - your observations are of value to some of us who have open minds and appreciate situational awareness rather than perma cheerleaders. The short and long term PSEC trends are down and no amount of chest beating will change that - and I agree, let's find out the terms of this latest deal before we draw any conclusions as to its benefit or detriment to div coverage.
true but origination fees are one time, and the shares PSEC recently issued well under NAV - presumably fund this loan, at least in part- have a yield of 12.7% that lasts forever
alta1056bc is trying to tell people to see the writing that is on the wall. People need to factor in the increased risk of a dividend cut in 1Q or 2Q of 2015. Those that think PSEC will continue to trade at $10 after the (potential) dividend cut are in for a rude awakening. If the dividend does not get cut, then buying here will prove to be nice. It's all about evaluating risks.
What a liar... You never bought in at all anyway. Dude you are so easy to see through. You had to post that BS because you lied about even getting in. Slick you have nothing to offer anyone but yourself with your fantasy world you live in. You come here to help who? How are you helping when you post "Have lots of dry powder and will average in from here. Short term risk reward is getting better." then lie about selling the same day. You are a nut case that has no cred... Get lost as the majority here don't need to read your waste of lies.