PSEC just announced its next three months' dividends with slight dividend raise (they always did raise 1/10 of a penny so they could brag that they continued to raise their dividend) and yet it dropped 4% today, now selling below its NAV, I believe.
So what are you waiting for? Wait for it to come back up before you will buy some?
Today should be the time to BUY BUY BUY.......if you like its yield vs its risk.....
Its a great buy in my opinion. PSEC fell $2 per share in the last few weeks. I love the yield and after following management for a few years now I am very comfortable with the direction of the company. GO PSEC, your dividends rock regardless of what their tax rate is.
so i should quit my job because i have to pay income tax????? i can think of a hundred much more disatrous things than a dividend tax. starting with losing a son in the bush/cheney criminal action in iraq. you obama bashers are lower than short sellers.
The dividends here are not qualified; PSEC has reported a few cent/year in qualified dividend, but those are not significant. PSEC pays shareholder's 90% or its taxable income to avoid paying corporate tax -- and that's not going to change this comming January.
Removing the qualified dividend status (15%) would impact things like V or ATT. That would, in many respects, be double taxing V or ATT becasue the parent companies already pay corporate tax. They may get a tax break on dividend, but that's an area that I know nothing about.
The impact to PSEC is indirect. In a recession (which could happen under many circumstances -- Fiscal Cliff, euro zone break up, etc.), business would lose money as people spend less. Obviously, PSEC could start to see more non-performing loans. In a nut shell, this is the fear and reason for today's sell off. That said, PSEC just sold 36 million shares last week, which in the short-term, will pretty much take care of its credit facility debt. Whether this was prudent timing or just luck, the net effect is that PSEC is extremely well positioned for any economic downturn.
I was not happy to see them sell 36 million shares. However, they now have a ton of liquidity -- probably more than any other BDC out there. With that, they are in a very good position to cherry pick any opportunities. Tomorrow's earnings report will be very good, and I have no doubt that we will continue to see slight dividend increases for many quarters. How the market reacts to other events is another story and ofter not rational (e.g. seeing this at $7.50 a little over a year ago becasue of fear and foolishness.)
What an abysmally stupid comment. There's nothing wrong with going back to before the tax on dividends and income were actually at least somewhat progressive. Regardless given there's no was to earn returns through yield except with real dividend stocks like PSEC then so whagt if you pay a little more and help out with the deficit. You lost schrub, live with it.
You must be several steps ahead of the herd, by the time you know how the tax law will affect dividend stocks, it would be already too LATE. Even if you have to pay regular income tax rate for dividends, so what? With a 11+% yield, even after you have paid your income tax, it would still be better than leaving your money in a money market, right?
I just bought another 4,000 shares of PSEC today, plus FSC, FFC, JPC, ARR. Now I am flat broke buy happy with all these dividends coming on the way to my IRA account......I also sold all my DXD....