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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Strange but true: seniors fear death less than running out of money in retirement. So what's a retiree to do? You could cut your expense...
-
If you're anticipating a long retirement, you'll want to remain invested in stocks to give your money a chance of outpacing inflatio...
-
If I could teach investors one thing, it would be how to identify and value “Forever Assets.” These businesses constitute the single best wa...
-
When writing this article, I was looking for an ideal list of dividend-paying stocks that consistently raise their dividends each year. In a...
-
Dividends are profit sharing payments sent out to stockholders. Companies have a variety of reasons for paying them, ranging from simply swe...
-
All bull markets come to an end, and this past decade has been a remarkable one for investors who've escaped largely unscathed from any ...
-
Dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplan...
-
Nothing, of course, is forever. Sears would have been a very good investment for a long time had you purchased it before or even during the ...
-
One of the most exciting things about many dividend stocks is that they not only pay regular dividends, but also increase those dividends on...
-
When writing this article, my plan was to find an ideal list of high-yield stock that is expected to have a higher dividend next year. To ma...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.