Dividends4Life: This 11.9% Yielding Dividend Dog Is On Sale Again

This stock is a ‘Strong Buy’ at today’s valuation level. The dividend is covered by NII, making another dividend cut in the foreseeable future unlikely. It is oversold and sells for an exaggerated discount to NAV. I think the reward-to-risk ratio is very attractive in the high $5s or very low $6s.

Prospect Capital Corporation (PSEC) makes a compelling value proposition after the latest drop. The BDC recently slashed its dividend which triggered a major sell-off in the stock. Today’s large Net Asset Value discount provides income investors with a wide margin of safety that points to attractive total returns. Prospect Capital’s dividend should be sustainable at its current level, and I think the stock has an attractive reward-to-risk combination. An investment in Prospect Capital yields 11.9 percent.

Source: Seeking Alpha

Related Articles:
- Hey, You Invest Like a Girl!
- Are Storm Clouds Gathering For These 4 High-Yielding Securities?
- Weekly Links: May 13, 2017
- 5 Dividend Stocks With A Low P/B Ratio
- Harvest the Fruit

Click here to have future posts delivered to you for free!

_____________________________________________________________________

0 comments

Post a Comment

~

Popular Posts Last 30 Days