I am considering cashing out of TCAP and splitting the proceeds among the 3 BDCs mentioned. I agree quality would lag a bit but PNNT is solid with slowly rising dividends, KCAP is acting very well with the price moving up nicely with the SPO being announced and PSEC has a great yield. This would increase cash flow the equivilent of having several thousand dollars available to invest at 10% rates. It is tempting and TCAP is getting pricey. I will have to give it some thought. GLTA!
I'm going to be selling my TCAP. Its been a great run and I'll keep it on my watch list but.... P/B x1.9 and a 7.2% yield is getting low. Probably sell before the earning report just to lock in profits. I've been long since fall 2009.
I'm also replacing with PSEC.
Why PSEC? It's has a negative growth for over 2 years. The dividend alone would not entice me to buy a stock. Growth + dividends = ROI. Return on Investment. Take a look at KCAP, MCC, AINV as alternatives to PSEC. there you have both growth and dividends.
Maybe you should sell half and let your profits run. I agree the stock is getting pricey but the quality appears better than the others you mentioned.I also own psec and it has gone nowhere for a long time because every time the stock goes up a bit they sell more stock and dilute the earnings.