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
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.