Does the just announced March of 2009 first quarter distribution mean that I am now making less than 8 cents per share per month instead of the previous 20 cents per share per month? Is this expected to significantly hurt the share price?
the market yield is over 18%! it might hurt the market price for a " instant" tomorrow am but overall this will follow the nav (at a discount) If the nav rises so will the share price and the divys in future quarters will also rise!
Since the 20 cents was really only 9 cents because of return of capital you should be happy to get almost 8 cents a month in 2009. The stock will probably go up now that they have set a reasonable dividend based on the portfolio they own. How could you not be happy to earn 17% if you buy tomorrow at $5.50