So in the past weeks I've read people doubting that PSEC can keep paying the high div. Seems to me that most people reinvest it (myself included) so the company pays it out, then gets a large amount of it back.
PSEC div will be cash flow in my retirement.
I would like your thoughts.
Dividend payouts flow to shareholders on the payment date. If you have your stock ownership set to DRIP, that cash is then turned around and used to buy additional shares in the open market, so the cash does not go to PSEC, it is exchanged for additional shares, with the proceeds going to whomever the seller was in the transaction.
I was curious about the source of shares for the drip, went to investor relations, couldn't find it in FAQ, so emailed the question and got this response:
"Shares issued in the dividend reinvestment plan are issued by the company."