you got it at a 5.5% discount to nav... which is decent based on its history. but if the market continues to tank, PDI is going down with it. PDI hit a 12% discount to nav last august.
SCM never covers the dividend.... never. BDCs that don't cover the dividend go down.
well, the NII sucked balls. just 22 cents. under earning the dividend for a few quarters was anticipated due to the new shares issued in connection with the acquisition of MCG Capital.
i certainly am no expert. but the nav has been in slow steady decline (in excess of the paid dividends) since july 1. the recent tightening of the discount may simply be people buying because it looks cheap, when in reality the net asset value of the fund is down, independent of dividends. i've learned the hard way to be patient.
when the market tanked in august, PDI sold off to over 10% below net asset value. that's what i'm waiting for again. i've been burned too many times. you got it for roughly 5.5% below nav... which is respectable. but this market is hideous.
buying PDI above NAV (current NAV is $26.76) is not a good idea. for 80% of its life, PDI has sold below NAV... significantly below NAV. and unfortunately, the NAV has been slowly declining since june 2015.
i wouldn't worry about the dividend much. i'd be far more interested in the share price to NAV ratio. not buying until it's at least 5% below NAV.
Jeebus H. the thing has gone straight up.
ETFs don't give retail investors the same emotional hoopla that individual stocks do. i think that's why you don't see much actual human activity here. anyway.... it will be interesting to see if money flows into XLF in the new year. i don't have any particular confidence in either direction.... but i bought this sucker after the last jobs report at $24.57. i'm clearly not too smart... so far.
PDI did great today, up 1.5% off the ex-div on 831,000 shares traded (way above ave). but... if you're buying today, you're buying it above NAV. so while it looks like a bargain, it really isn't.
buying PDI right now is a trap because it's selling very close to NAV, while the average 6 month share price is 5% below NAV. the NAV has also been slowing declining for 6 months. anyone buying PDI today with prices around $29.50, may not see a price that high again in the entirety of 2016 because the NAV is going to get scoured out with the special dividend. if you bought last year at this time for the special dividend, you never saw a share price that high again.
that note came out on december 3rd. $30 seems far-fetched... but hey, what do i know?
"the board of directors has decided to cease returning capital to an unappreciative market." so to stick-it to an "unappreciative" market, RAS kicks their actual share holders in the nuts?
what's the question? low oil for longer, and possibly rising rates soon. not a good recipe. on the other hand, how much lower can mid stream go? no one knows. it's all a guess.