This small-cap BDC had a rough 2015 and continues to struggle in 2016. Stock trades at a significant discount to book value and pays a high yield. Like skiing, there's greater risk, often leading to greater rewards. The motto at Mary Jane that you can see on bumper stickers and T-shirts is "No Pain, No Jane." In my "No Guts, No Glory" portfolio, I take a similar approach to investing. Sometimes there's pain in the form of capital losses but the rewards (profits) hopefully outweigh the risks.
One stock that I have been following for quite some time popped up on my radar screen recently. It is an internally managed BDC called KCAP Financial, Inc. (NASDAQ:KCAP). It also uses asset manager affiliates to manage CLO funds. Because the stock was trading at a substantial discount to NAV prior to the earnings report I decided to take a chance and initiate a small position in the stock. Currently my stake in KCAP represents about 3% of my portfolio value. With the news that NAV further declined in the first quarter of this year I am concerned that it may not have been a good decision but I will hold my shares at least until the next quarter and collect the 17% dividend in the meanwhile.
Source: Seeking Alpha
Related Articles:
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- Why We Are Dividend Growth Investors
- 5 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 6 Dividend Growth Stocks With Very Little Debt
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
On the surface, AT&T (NYSE: T) may look like a compelling investment. It is one of the largest telecommunications companies in the world...
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
The truth is, some of the best dividend stocks can be found outside the United States. The world is filled with a variety of strong multinat...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
0 comments
Post a Comment
Post a Comment