There are many reasons why value investing has been one of the most popular investment strategies. One of those reasons that’s of particular importance today is the idea of “margin of safety.” By purchasing equities at prices lower than their intrinsic value, an investor allows some room for error in the value estimation process. And indeed, with the S&P 500 Index, the NASDAQ Composite, and the Dow Jones Industrial Average all surpassing their all-time highs, who can be 100% sure that the current valuations are justified? That’s why today, I’m going to show you a stock that trades at a significant discount. And the yield is pretty handsome, too.
The stock in question is Pennant Park Investment Corp. (NASDAQ:PNNT), a business development company based in New York City. Pennant Park focuses on investing in middle-market private businesses in the U.S. The investments can take the form of secured loans, mezzanine debt, and equity. According to Pennant Park’s latest earnings report, the company has a net asset value (NAV) of $9.10 per share. However, note that PNNT stock trades at just $6.91 apiece. So if the company’s portfolio hasn’t deteriorated much since that report, its current share price would represent a more than 20% discount from its NAV.
Source: Income Investors
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
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
You know what's good to see in one of your holdings? Management actually doing what they said they were going to do. The yield is 9.97%,...
-
It's impossible to follow the specific investing strategies of the world's best investors. After all, we don't always know why t...
-
Many investors focus their portfolios on either growth stocks (if they're a long way from retirement) or income stocks (if they're n...
-
Regulators typically set customer rates for utilities to ensure investors recover a fair return on capital and allows the businesses keep th...
-
Market volatility is scarily high. Interest rates on sidelined cash are scarily low. Investors looking to de-risk or take some profits off o...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
When dividend-paying companies are undervalued, investors stand to gain a constant stream of dividend income on top of capital gains, as ove...
-
Holding a stake in great businesses that regularly pay dividends and then reinvesting those payouts is one of the most dependable paths to l...
-
Most monthly payers are REITs of some kind – and a good chunk are mortgage REITs, which are facing rising interest rates. Some ETFs also off...
0 comments
Post a Comment
Post a Comment