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Prospect Capital Corporation Message Board

  • kennybear4738 kennybear4738 Jun 27, 2013 3:11 PM Flag

    Dividends

    In 2010 PSEC cut the dividend from $1.62 to $1.20 per year. You haven't gotten that cut back yet. Just one more reason I can't see why people buy this stock. They went from .41 per quarter to .10 per month.

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    • This is called bait and hook. Offering an ever-increasing monthly dividend as bait, then hook you in buying and holding the shares, only to see its NAV continue to tank because its dividend payout is 124% and keep increasing, without any hope of any growth in its future EPS, therefore in short part of the dividends are only return of capital. If PSEC is indeed the BEST BDC, currently with the HIGHEST yield, why it keep tanking and cannot even break through the 10.80 price? Do tell!!!!!

      • 2 Replies to jadelover888888888
      • I know this is repetitive, but clear not as repetitive as your posts:

        1) "Offering an ever-increasing monthly dividend as bait, then hook you in buying and holding the shares, only to see its NAV continue to tank because its dividend payout is 124% and keep increasing, without any hope of any growth in its future EPS, therefore in short part of the dividends are only return of capital."

        The payout can't be 124% since it has "excess" earnings. By definition, the earnings have exceeded the dividend over time. The company has announced that this quarter the earnings will not be much under the dividend, if at all. No matter how often you say it (and you now have said it over 20 times), it doesn't make it true. The NAV may tank, but it will not be because of excess dividends - at least for this quarter. The monthly dividend is covered for now. Your bashing is baseless and makes your other comments less trustworthy (if factual at all).

        2) 'If PSEC is indeed the BEST BDC, currently with the HIGHEST yield, why it keep tanking and cannot even break through the 10.80 price? Do tell!!!!!"

        Wells Fargo says PSEC is the 21st of 23 BDCs, so at least one analyst says it is one of the worst BDCs. It does have one of the highest yields, though the ETF BDCL is leveraged and has a higher yield. How can you say that it "keeps tanking." You claimed to have bought at much lower prices. And it has not gone down after the ex-date as you promised. It has done better than the preferred closed-end funds that you have pumped. Please explain that!! Of course you won't. You never respond to corrections of you bashing. You just continue to bash. But you say that you don't short. Why bash and pump other stocks, if you don't short? Just love to hear yourself talk I guess. Well, you are worth many laughs every day.

      • If PSEC is indeed the BEST BDC, currently with the HIGHEST yield, why it keep tanking and cannot even break through the 10.80 price?

        Depends on how one defines "best". My bet is that it will not be long before the stock is over 11.25.

        GBDC is lower risk but then the yield is ~7.3%.

        PSEC is ~12.25% or about 500bps higher.

        Is 500bps enough to compensate for the higher risk? I say yes.

        Of course, they have rapidly deployed a lot of money and the credits are not aged yet. So it is fair to say prove it.

        In time we will see.

        zip

        Sentiment: Buy

    • What, one day in this volatile market is like forever and you are worried about a 3 year old non-event?

 
PSEC
10.91+0.06(+0.51%)Aug 20 4:00 PMEDT

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