phil, you can always look at their 10Q in trying to figure out their portfolio but that would be easily said then done. I once spent hours in trying to figure out the holdings of PSEC to no avail. They were all so subjective and without an objective third party's opinions, you never know what you can believe.
There is no stupid move, hind sight is always better. Somebody may decide to take over FTR and it may fly. It may not be a bad day to grab some then.
In that regard, as long as there is no rate hike or very mild ones, I believe my BIG THREEs:
FPF, WEA and GDO will continue to rise. I plan to add more EVV and EVG because of the "higher" quality of their holdings.
IMHO, their abilities to continue to sustain its future dividends without sanctifying their book values/NAVs may be the most important factor in holding them. In that respect, the dividends of both GAIN and GLAD have been GOLDEN. I still believe our FED will lack the gumption in raising rate in June. As a matter of fact, I read an article saying that Buffet predicted DOW will rise to 100,000 (currently 17,716) if our FED will just do one thing - announces that there will be no RATE HIKE for 50 years. I DO NOT know if that was just a joke but there was some truth to it, look at Japan, despite its large QE ever, its YEN kept rising vs US dollar and its stock market rose with it. When their rate was flat or dropped to or below zero, what choices would their investors have?
is one of the two BDC floating rate capitals (also classified as BDCs) I have been recommending because:
(1) You never know when rate may shoot up, they serve as insurance and when rate rises 100 bps or more, they will fly;
(2) Their earnings appear to be able to sustain their current dividends, both with a 11%-12% yield, where can you get that.
Yesterday, ACSF announced a NII of 0.29, down 0.02 from previous qtr.; its NAV was 11.72, down 0.07 from previous but it had declared 3 months' dividends, 0.097 per month, same as previous, as a result, it rose more than 2% today.
Incidentally I did recommend buying both FSFR and ACSF. ACSF is currently the no. 1 BDC gainer today, up 2% since it just declared pretty good earnings and declared three months' dividends. same as previous 0.097, at its current price of 10.164, still a very respectable 11.45% yield. If it drops below 10, would be time to add more.
Sorry for kind of jinxing FTR. It dropped 6.53% today, dropping to its current price of 5.085 despite:
"Reports Q1 (Mar) earnings of $0.01 per share, $0.07 better than the Capital IQ Consensus of ($0.06); revenues fell 1.2% year/year to $1.36 bln vs the $1.35 bln Capital IQ Consensus"
Making its yield 8.26%
True, but for some reasons, when preferred stated selling off, probably because of their low trading volumes, the drops could be abrupt and brutal. Best not to over-react.
I took a look at its dividend history and it had been reducing its dividend except staring with March 2015 when it raised its qtr dividend from 0.10 to 0.105. The problem was its earnings looks very dismal and when it announces its next earning before market opens tomorrow it would just as dismal. I do not know how it would continues to pay a 7.74% yield. If you absolutely have to buy some, you may want to wait till tomorrow morning and buy if it drops. I would not touch it though. I would rather buy and hold either T or VZ before I buy it. If you do not have any FPF, WEA, GDO, EVV and EVG, take a look at them, to me their risk/reward ratio is much better than that of FTR, much better. Even FSC is a better hold than it. I would buy some FSFR or ACSF if either one drops 3-5%. If rate does rise, these two would serve as your insurance. If you do not have any oil, I strongly advise you to grab some COP, MPC, PSX, BP, HFC, VLO, OXY or RDS/B. (in that order, there would be where the money is in the next two years). They bounced back strongly today after dropping earlier. GLTU J
I bought some FTR for my wife's account at 9.73 on 12/31/10 but soon sold all of them except 3.85454 shares. I probably bought it because of its high yield then but never bought back any for her account. I took a look at its adjusted price (after adding dividend) for 12/31/10 (when it closed at 9.73) and it is 6.17, today it was traded at 5.43, that means if I did not sell it and held it all these time, after about 5 years and four months, she will suffer a 12% loss despite its dividend. That is painful.
It is not that I do not like them because previously I had recommended them and bought them. In hind sight should probably keep some of them. However, it was hard to not take 15% profit. RSO's preferred appeared to rise and fall with it common. If the common continues to rise, I believe they would be all right but if the common has to cut its dividend and tanks badly, so will its pref. I actually like the C the most because of its floating rate feature. Comparing their risk/reward ratios, I right now rather add more ACSF or FSFR if either one drops. No pun intended.
I am very reluctant to add any BDCs right now, may be except FSFR or ACSF. I believe there is a 33% chance FSC may be downgraded soon and it may drop below 5 in the next three months. Of course, this is just my uneducated guess. I received a newsletter from PSEC which brags their performance, strange.