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BUY BDCS. TRUMP HITS 50%. REALLY??

Welcome to Dividend Income Investor. Before buying any investment, go to Core Portfolio to see a listing of current positions.
Now in our 6th year.

April 4, 2018

April 5 UPDATE:  BDCS should go ex-dividend around April 12 and we may be able to buy.  The price spiked up yesterday and we did NOT get filled.

On March 22, we mentioned that the recently passed tax law provided NEW benefits to Business Development Companies.  We have read numerous articles on this subject since that post, and continue to look at this opportunity in the BDC area.  Since our broker does not allow purchases of the risky twice leveraged BDCL, we are looking at it’s brother BDCS which pays a very nice 9.2%.  (If you can take the risk, buy BDCL which pays twice the yield.)

BDC’s have been tanking for a year.  But we may see a turn-around:  MAY meaning we are taking a very small position initially in case it continues to drop at which point we would get out.  BUY BDCS….we would not pay more than $19.73

https://seekingalpha.com/article/4160835-3-largest-business-development-companies-take-steps-increase-returns-shareholders?li_source=LI&li_medium=liftigniter-widget

BUSINESS: UBS ETRACS Linked to the Wells Fargo Business Development Company Index due April 26, 2041 are senior unsecured debt securities issued by UBS AG who is offering and selling the Medium-Term Notes, Series A of Exchange Traded Access Securities (ETRACS). INVESTMENT OBJECTIVE: The UBS ETRACS Linked to the Wells Fargo Business Development Company Index is designed to track an investment in the Wells Fargo Business Development Company Index and may pay a variable quarterly coupon linked to the cash distributions associated with the BDC constituents, less investor fees. If the BDCs do not make distributions or those distributions do not overcome the investor fees, then investors will not receive any coupons. INDEX DESCRIPTION: The Wells Fargo Business Development Company Index is a float adjusted, capitalization-weighted Index that is intended to measure the performance of all Business Development Companies (BDC) that are listed on the New York Stock Exchange or NASDAQ and satisfy specified market capitalization and other eligibility requirements. To qualify as a BDC, the company must be registered with the Securities and Exchange Commission and have elected to be regulated as a BDC under the Investment Company Act of 1940

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As hard as we try, we just DON’T GET the point of Facebook.  

“I got in trouble with friends of mine at Facebook, who were calling me and very upset with me because I said, ‘Facebook is the new cigarettes,”’ Benioff said. “It’s addictive, it’s not good for you and there’s outside forces trying to manipulate you to use it.”

https://www.bloomberg.com/news/articles/2018-04-02/facebook-data-scandal-has-left-zuckerberg-isolated-in-big-tech

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The very public radical left wing press continues to spew hate for Trump.  But it appears there is a private very quiet segment of the population that ‘gets’ what Trump is trying to do.

The Rasmussen Reports daily Presidential Tracking Poll for Monday shows that 50% of Likely U.S. Voters approve of President Trump’s job performance. Forty-nine percent (49%) disapprove.
The latest figures include 33% who Strongly Approve of the way the president is performing and 39% who Strongly Disapprove. This gives him a Presidential Approval Index rating of -6. (see trends).

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OK here’s another new one:  we keep telling ourself to stop reading this stuff.

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