We've covered several Business Development Companies, known as BDCs, in our recent articles. BDCs offer retail investors exposure to privately-held firms, which often also are funded by venture capital firms. However, since they invest in privately-held companies, it's up to a BDC's management to keep investors informed on the economic health of their portfolio companies. BDC share prices got slammed in 2020 due to the uncertainty as to how their portfolio companies would perform in the COVID lockdown environment. However, most of them have bounced back, as the year progressed, due to better than expected non-accruals.
Prospect Capital (PSEC) is one of the largest BDCs in the market, among the top 5 market caps for the industry. Founded in 2004, NY-based Prospect Capital provides private debt and private equity to middle-market companies in the US, with a focus on sponsor-backed transactions and direct lending to established owner-operated companies. PSEC yields 8.05%, with strong trailing dividend coverage of 1.33x. It's trading at an -11.7% discount to NAV/share, much lower than the BDC industry average. Management declared steady $.06 monthly dividends through January.
Source: Seeking Alpha
Related Articles:
8% Yield, 12% Discount, Monthly Pay Stock
Posted by D4L | Wednesday, December 29, 2021 | 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...
-
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...
-
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...
-
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.