You want a high yield portfolio? LNCO is OK for a start, but I wouldn't allocate more than 4% to any single position.
Maybe look at FSC or PSEC (High yield, monthly paying BDCs) for a part of the mix.
Look at something like EOS, another monthly payer that holds a portfolio and writes call options against its holdings.
FEI.....a CEF that holds MLPs. Pays monthly, yields around 6%, and also writes calls against a part (about 35%) of its portfolio. Trading about 8-9% below its NAV.
Maybe some Mortgage REITs for high yield, although I'm not fond of that group personally.
Just a few ideas. I hold LNCO, FSC, and FEI of those mentioned.
A partial list of restaurant stocks I had over the years (from memory sitting here)....
Wendy's....did really well
Mc Donalds (in 1978 @ a PE ratio of about 9....should've hung on)
Spartan Food Systems
Probably a few others....just can't remember them all right now. Generally did quite well with the group. Avoided all the bankruptcies like Sambo's. Got in on a few mergers too.
Isn't "buy short" an oxymoron? Crawl back into your hole Gary.
They are "the quiet company," especially when it comes to press releases. I think it actually costs $$ to put out press releases. This could be why they hesitate to issue "non essential" info. Watching our $$.
Put into IRA and Regular accounts @ 29.72 - .75. Been watching for awhile. LNCO pays .2416 monthly for an annual rate of $2.90.....current yield of about 9.74%.
LNCO issues a 1099 for tax purposes.
LINE issues a K-1 for tax purposes.
LNCO was created to assist LINE with raising capital and as a tool to "scrub" the MLP distributions and turn them into 'dividends' (hence the 1099 vs the K-1) for tax purposes.
Would like to hold this for income and potential cap gains, especially in my reg account. Will see how that goes.
ps......the only current holding in my IRA that's more than 5% of the portfolio is AVNR......a midcap biotech I really like. Cash is in the 64% area if that can be considered a "holding " I guess.
I agree. Takes a lot of volatility out of the stock. The big price hits from 1/4ly x-dates makes it hard to hold high yield stocks. I can hold monthly payers (like FSC, FEI, CEN, and NML) for long periods of time without being tempted to trade as the next div is always just around the corner (just like my pension and SS). I always end up trading 1/4ly payers as I hate taking the big x-date hit.
If you get enough of a runup going into the X-div date, it just might be a better move to sell and just skip the distribution. Could easily fall by an amount greater than the distribution amount. Good luck either way.
Bought a few small positions today in AVNR and KERX (both biotech). Also back into OEDV (small oil) @ 1.10. Have to play the high beta due to my large cash position.......right now @ 63%.
Didn't buy any BKCC.
J-man........dilution is a concern. Some 23 mil ~ new shares. Also now must pay $4.00 per share div on those shares vs 3.375% former interest cost. That's close to $100 mil per year in div expense vs previous interest expense of less than $25 mil. The plus is that the balance sheet got cleaned up a little bit at the expense of added div cost. They will likely go out and borrow more at a similar low (or lower) cost.
Just entered at 1.10. Been here before. Gary is bashing over at the AVNR board too. Added to my position there today @ 5.22. Long term (profitable) holder there.
Is now July 28. They should be announcing the next 3 months of distributions and day now. Last announcement was on April 29th, a Tuesday. An increase from the .1042 level would be nice and possibly deserved. The NAV has risen about $2.00 from the "net" offering level of about 19.10.
Just looking so far. Trading around 8.91 - .92. March 31 NAV was $9.59. Dividend was lowered from .26 to .21 along with May 1 earnings report. Average estimate for this 1/4 is .22. Thinking about picking up a good sized position. Thoughts?
Somewhat similar to what happened to QCOR a few years ago. Dropped to about $17, now $90+.
Not holding either...........Kel