Posted: 6/23/2016 4:32:04 PM EDT
| Any views here on the stock? Its an $8.00 with a 12% dividend paid monthly. Seems a little to good to be true. |
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It is on my list. It pays 0.08 per month, or 12% a year roughly.
If you search around for "monthly dividend stocks" you can find a pretty good list. Really allows for compounding interest. Many of these stocks are below 1.0 price to book which is a good sign. I plan to pickup a few of the different ones, with PSEC on the list. |
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watch out for when these companies do SPO's or share purchase offers. it means they are putting more shares on the market to make money. usually leads to a drop in share price.
also watch out for dividend cuts. if they dividend has been continueously decreasing , means they're making less money. so far PSEC has been steadily dropping the past 3 years. it's only rebounded a little since jan this year. |
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PSEC is not know for having a very shareholder friendly management team. I also believe that they have done a couple of share issues at prices below NAV. I owned them for a couple of years back in the 2011-2014 timeframe and made money. But you need to really pay attention to whats going on with them and I would consider them a trading stock and not a long term hold
Look at seeking alpha and the yahoo message boards before you commit funds to them |