The first thing to check when you come across ultra-high yielders is dividend safety. In today’s market, ultra-high dividend yields often serve as warning signs. So, does the company make enough profits to cover its payout? ...
In the case of THL Credit, Inc. (NASDAQ:TCRD), the company’s double-digit payout may actually be worth considering. Let me explain. THL Credit pays quarterly dividends of $0.27 per share, giving TCRD stock a staggering annual yield of 13.8% at the current price. Well, in 2017, THL Credit generated net investment income of $39.7 million, or $1.21 per diluted share. Since the company declared total dividends of $1.08 per share for the year, it achieved a payout ratio of 89.3%, leaving a margin of safety.
Source: Income Investors
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