Is PSEC a Good Dividend Stock? (9%+ Yield, Monthly Dividends)
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- เผยแพร่เมื่อ 28 พ.ย. 2022
- Today we’re gonna take a look at a stock I’ve gotten a lot of requests to go over, which is Prospect Capital Corporation, ticker PSEC. They’re a business development company that makes debt and equity investments in U.S. middle market companies. The company typically makes investments between $10 million and $500 million dollars in each business across a wide rang of sectors. According to their website their mission is to deliver consistent returns and preserve capital, independent of market timing, through a culture of transparency, collaboration, and alignment with investors. To date Prospect Capital has paid out more than $3.8 billion dollars in dividends to their shareholders.
Looking at the surface we can see there’s a lot of things to like about this stock. It’s currently offering investors a dividend yield of 9.46% according to Google which is definitely above average for your typical dividend stock. On top of that this company’s been paying monthly dividends for more than a decade, and their stock is currently trading at a discount to their book value. It’s also one of the oldest publicly listed BDCs, having been founded back in 2004. So with all these good aspects about PSEC, let’s take a deeper look into Prospect Capital and try and determine if this is a good stock for investors currently seeking income or maybe even capital appreciation.
#dividendinvesting #dividends #dividendstocks
Correction: PSEC has cut their dividend twice in 10 years, not three times. They reduced their dividend in 2010 which obviously isn't within the last 10 years. This makes PSEC better as of the last few years.
Hi @Dividend Bull, thank you for this very interesting overview concerning PSEC.
I am always looking forward to every video from you!! I am also a dedicated high-yield-dividend investor.
Can you also please take a look in a video to the BDC Trinity Capital?
It yiels over 18% and looks very promising on the surface... even though $TRIN in this current situation has some investments in Crypto Firms, it only makes up around 5% or 6%...
Thank you so much in advance..
@@svenehlers9593 TRIN is a good stock. Good EPS and balance sheet. I would probably buy if I did not already have a stock that tops it in yield and the pay date. Good find.
I have owned this stock for over a year now. Personally, I like the stock and its monthly dividend. It was great to hear your in-depth analysis. Thanks for sharing your opinion on PSEC.
about par with clm
@@krakhour2 Except CLM has a horrible EPS compared to dividend payout.
why this actions alwas go down?((((((
My three favorite Finance channels: Dividend Bull, Stock Brotha, & Zip Trader. Make my week complete!
I like Charlie too :)
Genexdividendinvestor is really good too
Love the analysis, I’ve been adding somewhat heavily lately as share price has the yield on cost over 10% right now. Plan to just use the dividends somewhere that will grow if share price takes the yield back below 10%, but probably continuing to add until then. Here’s to hoping the trends of the last 5 years continue and it comes out of this current market healthy.
This was how I first discovered div yields, I bought originally in April, 2020. I held on for a good while before I eventually blew up my first account "learning" options, and being able to dumb it at 8 dollars was sad but saved me actual ruin. I've finally been able to get back my original number of shares at the 10% yield range, unless something in the wind changes very severely I'm going to keep holding and reinvesting the yield for the foreseeable future.
I have owed this stock for a year. Yes the dividend is good. I just sold some shares to limit my potential risk. Another stock that I followed for awhile AUY was delisted. I am more cautious of risky stocks and invest more in more stable stocks.
Love the content, appreciate your analysis DB 😎👍
Great videos man! You should do one of these for MAIN. That the BDC I’ve decided to invest in.
PSEC STAG LTC 0 MAIN have been around awhile and have a long term record which helps when making buy/sell decisions
PSEC and O have dividend payout to EPS problems.
Very curious about this BDC. been buying and selling since 2015. Monthly payer...thanks for the research, like most investments, none are slamdunk. This one has risks and rewards. It will stay part of my diverse portfolio.
This video encouraged me to do a bit of research and I ended up buying more PSEC, after owning it for just a few months now I'm barely running a profit overall.
Love the channel and your videos
my portfolio has good companies, however I have been red for more than a year now. Recently started investing in the stock market and was down 35% last year and now down 27% in the last sell off. I work hard for my money, so investing is making me a nervous sad wreck. I don't know if I should sell everything and just sit and wait.
Building a good investment portfolio is more complex so I would recommend you seek professional support. This way you can get strategies designed to address your unique long-term goals and financial dreams.
I’ve been trying to hire a professional after all it’s what really wealthy people do, they hire more experienced persons to do the job but I can’t find anyone I can trust.
Amie Christine Shapiro. She is famous and has got a website. So, you can check her out online and subsequently contact her from there.
Just make sure you're frugal most times. Being frugal is about putting your dollars towards the things you care about and not overspending on the things that don’t matter.
Wow I know Amie. Her platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not she outperforms i will always stay invested as her methods alone with keeping investors in touch with their strategies and outlooks are something that so few managers are capable of and they should follow suit.
Excellent analysis. I agree there are better choices for a good div and capital appreciation over the years. Maybe you can do a video on the top 10 from 2008 and maybe include some that haven't been around that long. I have a few standouts like ARCC MAIN HTGC WPC GAIN and GOOD that might make the list that had returns better than the SPY.
HTGC, WPC, and GOOD are terrible stocks. Be careful on balance sheets and EPS.
@@wewhoareabouttodiesaluteyo9303 Their 15 yr record says they are doing way better than most.
Really enjoy these twice a week videos and thanks for the info, been a subscriber for awhile and the work has been appreciated
Great to hear your thought on this I own 200 shares And I personally enjoy the monthly dividends
For 200 shares, how much in dividends do you get? Per month
@@Uniteddreamerud I get around $12 dollars every month
@@epiclagz9553 thanks bro
I was fortunate enough to buy PSEC near the bottom in Dec 2020 and been pretty happy with it since then. Thanks for the analysis.
If you bought it in 2020, you are set because you will always be in the green.
“I love your videos and thank you also for recommending some books and your broker Lisa Winters, her services are exceptional and I've been earning greatly from investing with her”
@Terry David I would recommend you get started with a professional broker that will trade for you while you get the profit
@Kenny I would recommend my current broker Lisa Winters Financials. She is currently earning a lot of profits for me and her services are top notch.
@Kenny of course
+167
8825
Cheers for this, I own only ~14 shares of PSEC currently but I will plan to purchase more. So far I'm green in that sliver of my portfolio :D
Good stock.
People need to understand that these types of companies are solely for dividends. Companies like these only focus to give back to the shareholder not for capital growth. You can use them as passive income.
Thank you.
I have 40 shares paying me a cool $2.40 every month. Humble brag LOL
U have the drip yet or no
Had my first $100+ dividend this month from PSEC keep it up
@@StinkleFresh I only use ETFs to drip. These stocks are for current income.
I hold a small position in PSEC. Also HRZN, PFLT, TSLX, HGLB, DX and some others.
Check out New Mountain NMFC. Only one cut since 2011 and that was caused by CV response. They just increased the Div. Monthly payer. Stock price pretty flat since 2011. Added to my watch list.
Look into the ETF BIZD
PFLT and HGLB pay more than their EPSs. DX has a bad liability to equity ratio.
Thanks DB! Your analysis is spot on. Very objective. Always appreciated.
Another note I didn't hear you mention is that it has a 5% DRIP discount. I personally don't own it either and have ARCC
How can you tell if a company discounts drip ?
@@VictorSanchezVS13 companies website, usually under investor relations and the dividend section
I haven't lost any money on this stock and made some dividend money since Feb 2022. unlike my position in QYLD which I purchased on your various videos. Not complaining just observing.
yeah me too, QYLD was getting lots of mentions so i jumped into that one, about 100 shares currently... i keep reinvesting especially now that they seem to have hit bottom in their stock price. i get a good dividend payment each month so not complaining and by purchasing more while the share price is down i'm lowering my average buy and turning green slowly
If the current book value is around $12.85 per share does that signify this could still be potentially undervalued? I am comparing it to ARCC whose book value per share is only at $19 which is less than their current price of $20. PSEC is only trading at $6 compared to it's $12.85 book value. What am I missing here? Thanks in advance for your input.
Just bought 60 shares of psec !
You sold ?
Please Make video on “PFN”
Buy a share or two whenever it's oversold. Ride it to overbought. Take some profits. It's easy to sit on because of the divie,
I like PSEC's monthly distributions and high yield, and their dividend has been fairly stable since 2017, despite prior cuts. Likewise their price has been fairly stable over the same period, after having dropped previously. [So, **maybe** they've gotten their sh!t together? Dunno... We'll see if they continue to remain "stable," or, God forbid, start growing...]
So, I have a bit of it at the moment. Well, not a whole lot since I sold off and moved it over to SJT. But I'm slowly rebuilding my position.
That said I'm also diversifying into other things like PFLT, GAIN, MAIN, among other things... So it's not all eggs in one middling basket.
Will likely start adding some utility companies which seem to have stable price growth and stable or growing dividends.
May throw in some other stuff with large historical stock growth like MSFT, LOW, AAPL, QQQ, etc. We'll see...
But, I do like the high-yielding monthlies, as long as they're not obviously massively declining in value, dividend cuts, or super-volatile...
SJT is a worse stock than PSEC. I remember once when it stopped paying dividends all together. Not to mention it does not pay a stable dividend, it fluctuates. PFLT pays way more than its EPS.
can you take another look at the weekly paying dividend ETF's " WKLY" and " TGIF" ? TGIF actually increased their dividend
Not worth the price.
I have PSEC
Good EPS and good balance sheet! Definitely a buy!
Excellent video thanks
Should we stop reinvesting in QYLD and just collect the dividend income at this point? I am in it for the long run with this stock, I don't want to stop collecting shares but not sure what to do.
good question, i'm red in my QYLD because of the massive drop in share price but i'm still reinvesting since the share price seems to have stabilised. i'm slowly seeing my portfolio move green (ish)! and can't complain about that monthly dividend!
I have 3701 of QYLD shares I am past the loss stage it is giving me just profit now I have it for 4 years it will follow the Nasdaq and go back up in the next bull run its all I am keeping in it.
at .16 cents per shar it is giving me about $606 per month its part of my large high-income portfolio which is at $3500 to $4000 a month .
RYLD is better.
@@wewhoareabouttodiesaluteyo9303 i also own 1600 shares of RYLD
@@kuladoma3 So you are easily making $1k per month. Is this just a supplement to your job? Another $1k and you can officially retire.
I'm not strictly a dividend investor per se, but more of a value investor. In fact, I try to model a lot of my process on how Roaring Kitty (DFV) analyzes, and insider buying and ownership are things that we like to see.
Sir, huge opportunity on Knop price drop a whopping 18% and the yield is about the same. You look out for us so throwing this one at you. I'll be buying this heavily while prices are down look into this one if you decide to pull the trigger on it man welcome to the party.
For what it's worth, PSEC has a Zack's # 1 rank.
Please, Could you check and review "SCM" Stellus Capital Management
Would like you to do a video on IEP. I have been playing it every year. Buy before the dividend and then sell after. Capture a 12 to 14 percent dividend. Looks somewhat sustainable and icahn gets a lot of nice energy deals that a normal investor cant get.
He already did make one.
I lowkey like this stock
Can you consider taking a look at SQM? Thank you.
Can you do a video on IEP ?
Terrible EPS
I love BDCs but I prefer the ETF BIZD.. instead of managing all of them in a portfolio
Net expense ratio is 10.92%?
It's actually.45
@@morrieyedor9305 Well that will be the first time Yahoo Finance AND my brokerage account would be wrong. They both state 10.92%.
I do not even know how anyone would buy the ETF if it is was that bad. You would not be making anything off it.
I promise that it is, they have to report all expense ratios from all the holdings, do more research before u make a wise ass remark
Yahoo is wrong all the time
What about RA, RC, ABR, TCPC, QQQX
How about Goldman Sachs BDC (GSBD) ???
Good stock
I've had PSEC for a little over 2 years. It has been reliably producing. I use the dividends to feed my KO habit.
I'd be interested to see your take on energy stocks outside of the oil industry. I have CWEN, ET and USAC.
Love ET. Just added some Cwen after i looked it up!
Good energy SUN.... sunnoco. Nice divis and growth.
USAC is a limited partnership isn't it? Be careful with the K1s and the EPS and liability to equity looks kind of suspect. Same with CWEN. ET is another LP and its liability to equity ratio is trouble.
ET is one of my favorite golden gooses. I bought my first 250 shares in November 2020 for $5.45. After dividend reinvestment and additional purchases, I hit 1000 shares at a cost basis of $8.50 and now I mostly just do dividend reinvestment. I will hold this stock until I retire.
owned PSEC a while ago but dumped. Your highlights a big reason why. There are better options.
Which one is a better option?
Yeah totally mixed opinion on this stock.. ares capital is clearly the better stock
I disagree PSEC hold Zacks #1 ranking
PSEC pays a higher yield, but that is about it.
Robin hood use these free shares to get people to join their web site. Not a great bdc
I would have been sold on it. I have had PSEC for as long as I have been an investor.
@@wewhoareabouttodiesaluteyo9303 how many shares you have and is the dividends worth the time and money you invested in it ?
@@Uniteddreamerud I ended up selling it the minute I saw the EPS was negative on Etrade. lol
$2 million/wk for 1 guy??? No thanks!!!
Well shit. Now you got me scared with buying more. Oh well, I'll just hope that the dividend stays at 6 cents for a few years. Wish me luck.
Honestly, I think what happened with it only worked for the better. How many stocks right now have a good EPS and a balance sheet?
I have a hard time listening to advice from people who can not admit that we are already in a recession .
So much of what you say screams risk, risk and more RISK. And you quote a NYT article from 7 years ago? I'll have to pass.
PSEC is one of the few good stocks. EPS and balance sheets.
It's not worth it, because it has only gone down in both stock price and dividend payout.
While having a good EPS and balance sheet that most stocks have trouble maintaining?
Had this stock since 2017. Honestly I don't like it and will get rid of it soon. They also contact their investors a few times a year and ask them to vote on things...I have no desire to do this.
Seems like a dog to me. 18 years of declining share price. Avoid until they get their act together. Their share price is $5.94 as of today and was over $7 just a few months ago. Avoid IMO.
You should consider doing a video on QQQX. Seeing a pretty huge dividend payout and really decent growth on this etf.
Bad EPS