While BDCs, in general, have not shown strength during recent market upswing, FSC has continued to provide solid dividends ( over 10% ). BDCs need to issue new shares to fund their investments. When these shares are issued above NAV, as is the case here, shareholders almost always benefit after the initial, transient drop when the new shares are announced.
FSC has done really well for me over the last couple of years. However most of my buying was on the sharp drops a while back. I'll add a bit here and there on lesser plumets but only once the current position has paid me enough since the last purchase such that my relative cost basis (purchase price minus dividends) warrents that its alright to buy again.
I have been in this stock for 2 years and stock performance has been dismal. Dividends have not offset the loss from stock price. While issuing new shares are needed to fund new investments, the company needs to do a better job of keeping the PPS at a level that does not discourage shareholders. They have not done that for me.