Prospect Capital Corp (PSEC)

[jugs]

Monthly payers are a great way to go for many. Turning 74 in a week, I prefer managing cash inflows myself. Many quarterly payers on DRIP arrangements will apply the cash while shares are still artificially high due to the expected run-up prior to going ex. In effect, you might wind up paying considerably more than had you elected to receive cash in lieu of new shares.

I received more than $4,000 this morning from NTI, a quarterly payer. Had a DRIP been in place, new shares would have been purchased at about $28 per. I could have purchased the same shares at under $27 last week! I sold half my position the day prior to its going ex, getting more than $29. This well exceeds the system provided by DRIPs. Sure, I gave up the 77 cents (distribution) but came out way ahead this way.

We definitely agree on the merits of compounding. I'm probably older than you, however, and gaining a handful of shares today may not offer me much unless I outlive many others. lol