As we have seen plenty of times, a company that can’t cover its payout will have to cut its dividend at some point. And when that happens, the company’s stock price could take a hit as well due to the bad news. As a risk-averse investor, you certainly don’t want to buy a high-yield stock before it cuts its dividend. But what about after the dividend cut? Well, that could lead to some interesting discussions.
THL Credit, Inc. (NASDAQ:TCRD) is an ultra-high yielder that cut its payout earlier this year. The Boston, Massachusetts-based business development company (BDC) never really made headlines in financial media, but has always offered a generous dividend policy since it went public in 2010. When THL Credit reported 2018 fourth-quarter earnings on March 6, 2019, it also announced a quarterly dividend rate of $0.21 per share. Compared to the company’s prior quarterly cash dividend of $0.27 per share, the new dividend rate represented a 22.2% reduction. Seeing the improvement in dividend coverage, management intends to maintain the company’s oversized payout. According to Chief Executive Officer Christopher Flynn, the company, “set the dividend at a level with a new management team where we feel like as we sit here today, we can still cover it at that 105% to 110%.”
Source: Income Investors
Related Articles:
- 8 Dividend Stocks Building A Growing Cash Stream
- How To Build A Sustainable High Yield Portfolio
- How To Buy Dividend Stocks At The Bottom
- 8 Stocks That Have Paid Dividends Since The 1800s
- 5 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
This 12.7% Yield Looks Interesting
Posted by D4L | Wednesday, July 24, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Dividends can be an underrated source of income for investors. With so much volatility in the stock market right now, it can be comforting t...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.