Take a look at the ownership of BKCC, that may give us some hints.
It declared a quarterly dividend of 0.32, with ex-div date on 3/18/10, payable on 4/5/10. That gives it an annual yield of about 12.83% at today's price of $ 9.97 per share. Not bad.
Based on its estimated EPS for future quarters, there is no reason that they cannot maintain such quarterly dividend payout. Its book value is $ 9.59, therefore it is already sold at a premium.
There was a very good message posted in the BKCC message board: Conference Call. One should read it.
In short, many of us including myself believe BKCC will have a 12-month targeted price between $12 to $13. Therefore, I am no longer selling any BKCC shares I own because once I sell them I will not be able to buy them back.
10million shares sold at 12.4.
What are they really going to do with the money is anyone's guess. I didn't think this stock would decline so much.
From 13 to 11.35. That is a 1.65c share decline or 11%
with an 'NAV' of $9.62 and an average return of 12.4% I do not see how they can maintain their dividend of $1.28/year; especially after expenses.
It might still offer a decent return, but I doubt the street will support their stock value if (when) they cut the dividend.
anyone have any other insight?