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Prospect Capital Corporation Message Board

  • bonefishinfool bonefishinfool Jul 1, 2010 12:06 PM Flag

    Very positive upside to divi change....

    Although the divi is reduced about 25% , what was gained was distributions on a monthly basis, which if one is reinvesting, makes up for the decrease in compunding...not to mention if you are living off of dividends, which has untold benefits. I have always loved companies that pay monthly dividends.. As of todays prices, were looking at a 12.87% yield, that's damn good where I come from ....

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    • I no longer own this stock and will be no longer contributing to this board, but a 25% cut in dividends is not made up by the new monthly compounding. It doesn't even come close.

      I put the proceeds of this into AWF, which has a 3, 5 and 10 year yearly return of 12, 12 and 15 percent.

    • I also like the monthly dividend. 10 cents a month on a $9.30 investment is the best deal around town, or anywhere else. Buy on the dips. I just added to my position.

      • 1 Reply to miriamwong28
      • imir......PSEC's new distribution policy is the right thing for them to do IMHO.....As the past distribution policy was not only "misleading" to some investors, it also drained out capital from PSEC that is needed in their day to day business operations.....The sound practice for this company, is to pay out 90% of it's yearly earnings as to comply with current regulations......This new policy rids PSEC of the "window dressing" policy that was not sustainable in the long term and was very detrimental to the company's cash flow. I also think the monthly distribution is a good thing, as it should draw attention from investors looking for that monthly cash flow rather than a quarterly distribution.....This recent drop in price is not soley due to this distribution change.....The market in general is taking a hit, as is other "Income type stocks/funds/ETF's".....Look at NCV as an example......Good luck to all investors here.....

8.33+0.04(+0.48%)Jul 22 4:00 PMEDT