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Resource Capital Corp. Message Board

  • mysonchino Mar 22, 2014 9:31 AM Flag

    If you want sustainable rising income

    I have an opinion and it is only my opinion as to the best areas to generate high, sustainable, increasing income and capital appreciation.

    My first choice is RSO. This is because of the extremely high yield and the fact that it is now sustainable. It will increase(but not much) and share price will increase(but not much) over the next 3 years. But the current income is great and I believe safe.

    My second pick is NCT. Many of the same reasons. High current yield etc. However, the upside here is much greater. I believe we will see significant dividend increases and share appreciation over the next 3 years. For an over all play this is my #1 pick but because RSO has a higher yield which is now sustainable I listed it first based on strictly current income.

    Following closely behind RSO and NCT are a number of BDCs. MCC just increased the dividend from 1.12 to 1.44. KCAP raised from .72 to .96. TICC has rised the dividend last june, march june and august going from .96 to 1.16. BDCL, the UBS e-tracs double leverage pool of BDCs just increased the dividend again. Very high yield. Of course other BDCs are increasing their dividends at anticipated rates.

    Lastly, I like equity income cefs selling at a discount yielding over 9% on market price but in the low 8s based on NAV. Sustainable, diversified and rises with the markets. CII, BDJ, ETV, ETB, MMCN; JSN, JLA, JPZ. The funds have more or less kept pace with the total return of the S&P 500 over the past year.

    All in all a portfolio of these picks will provide high , sustainable income, diversification and capital appreciation. If the market turns south your income will continue.

    Remember, just offering my opinion so take it for what you paid for it. GLTA!

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    • I bought more today, couldn't pass up a bargain.
      The .20 divy is safe this year but who knows after that, I will enjoy the 14% yield while it lasts.

      Sentiment: Buy

    • Don't feed the this troll. Put him on ignore.

      "The research, conducted by Erin Buckels of the University of Manitoba and two colleagues, sought to directly investigate whether people who engage in trolling are characterized by personality traits that fall in the so-called "Dark Tetrad": Machiavellianism (willingness to manipulate and deceive others), narcissism (egotism and self-obsession), psychopathy (the lack of remorse and empathy), and sadism (pleasure in the suffering of others)."

    • tulsadevlin Mar 26, 2014 3:18 PM Flag

      Chino, thank you for your up date on RSO and other stocks for income.

      Like you, I sold most of my RSO awhile back, but retained some of my lower cost shares.I now own 4500 shares.

      FSC, TCPC ,TICC,MCC,and PSEC are the main BDC's I own.

      REITS include NLY, CIM,JMI, and my tarnished RSO.

      Thanks again , CHINO and GLTU.

    • Check out NYMT, JMI, ORC, OAKS, PSEC, & maybe IVR, most just went EX-DATE. I`m still thinking about OAKS myself, others have been good for me.

      Sentiment: Hold

    • Myson, you can't call RSO dividend sustainable. They will pay the .20 for 2014, but with AFFO of .14 last qtr, earnings will need to improve. I have reduced my position 75%, but still hold over 5k shares. I would like to see at least .17 for the 1st qtr and than maybe believe what Jonathan says. The positive thing is that most of the 2014 dividends will be ROC. We shall see in about a month. GLTA


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