Replies to post #1541 on Dividends

[fung_derf]

Chart looks good, but don't think I like what they do...

Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company's investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls. The Company is a national non-bank lender that provides, together with its controlled portfolio companies, a range of business services and financial products under the Newtek brand to the small and medium-sized business (SMB) market. The Company issues debt and makes equity investments in portfolio companies in various industries. Its products and services include Business Lending including the United States Small Business Administration (SBA) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Data Backup, and Payroll and Benefits Solutions to SMB accounts across all industries.

[bar1080]

Just glanced at NEWT. Be aware that BDCs are now allowed by law to use more leverage than in the past. Maybe twice as much. Not all are taking advantage of that change but NEWT is. BDCs have a pretty good safety record precisely because they have been required to maintain strong balance sheets. Is that safety record in jeopardy?

I saw that PSEC said it wasn't going to increase leverage... for the time being, and its stock is doing well, too.

https://www.reuters.com/article/bdc-leverage/bdcs-move-to-boost-leverage-idUSL1N1RT21M