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
-
Each of these high-yield dividend stocks has a dividend yield exceeding 6.5%. That’s is a very high dividend yield few stocks have. In addit...
-
I like high-yield dividend stocks that also have the ability to buy back their shares. These are called total yield dividend stocks. They of...
-
Because their financials must support a monthly dividend payment, the companies in this space are stable by nature — their operations are st...
-
As veteran traders will attest, though, nothing lasts forever. It might not be a bad idea to start adding exposure to the market's lagga...
-
In a soaring market, a few percentages of dividends may not seem like much. Over the past few months, the Dow Jones Industrial Average, the ...
-
Dividend payments are, by nature, a conservative strategy for companies to use, and as a rule of thumb the more conservative companies are l...
-
While there are a number of factors responsible for pushing the stock market lower, the spread of COVID-19 looks to be the match that lit th...
-
Looking for dividend growth in the high yield space? This stock yields 11.55%, with strong 1.41X trailing coverage, and mgt. has guided to 1...
-
It operates in a great location. Florida has seen a material influx of residents in recent years as people look to move to a warmer climate ...
-
There’s a group of companies that have started catering specifically to retirees: monthly dividend stocks. Admittedly, the universe of month...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.