LOOK AT TICCL
March 15, 2018
TICCL went ex-dividend today. If it gets down to around $25.30 you can buy or add to the position. It pays 6.3%. This position has been working well for us.
We saw a positive article in SeekingAlpha.com on CGBD which is a holding in the Core Portfolio. The price is now below what we paid. You can buy now, or wait for a lower price when it goes ex-dividend at the end of the month. Pays 8.3%. All business development companies have declined in price, but it appears a turn-around is coming.
NOTE: If BDC’s do in fact start on the upswing we will look at BDCL which is a leveraged CEF that pays 20%. This is of course high risk, but we have owned in the past and had good luck.
Some copy pulled from article linked below:
For the quarter ended December 31, 2017, CGBD hit my best case projections mostly due to higher-than-expected income from increased portfolio yields and an increase in ‘other income’ from higher prepayment fees, covering its dividend by 115%. It is important to note that most of the recent increases were from recurring sources of dividend coverage implying the potential for a dividend increase or at least special dividends in the coming quarters.
“Total investment income was about $50 million, up $7 million versus the third quarter. The drivers of the meaningful increase were threefold: First, higher interest income from loans, based primarily on higher average investments outstanding over the course of the quarter, higher OID accretion on repaid positions and increasing LIBOR; second, growth in other income, primarily from higher call premiums and amendment fees; and third, growth in interest and dividend income from the JV as we continue to scale that vehicle.”
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