Since mid 2005, PSEC has paid out a run rate of AT LEAST $1 P/S in dividends
Consistently paid out over $1 through 2007, 2008, 2009 as well, unlike most of the super aggressive BDC's.
Also they are a BDC, not a REIT. A critical point, and a distinction some on this board don't seem to get.
Their management knows what they are doing as far as the companies they invest in and the risks they take.
Banks are just not going to all of a sudden start lending to under capitalized businesses just because the rates rise a couple of points.
"the entire BDC sector is better prepared for any downturn in that they have generally gravitated towards higher-quality investments: more debt, less equity; more senior loans, less mezzanine/subordinated debt.....(while) balance sheets...are..less exposed to short-term fluctuations with longer-term debt issuances,.....SBIC loans from the Small Business Administration, and more equity" BDC Buzz at SA.
I'll sit on this and continue to take the monthly income.
(I may sell my REM while it's still up though....and buy more O if it drops to the low 40's....and buy more ROIC too, I love me some ROIC).
Mortgage REITS are not going to be much fun when the cash spigot ends.
There is no substitute for quality portfolios and good management.