I’ve added (PFLT) PennetPark Floating Rate to My Dividend Investing Plan portfolio…
Funding Source: Regular Investment
Date of Purchase: 11/06/2017
Name: PennetPark Floating Rate Cap
Amount Invested Today: $689.95
Total Basis: $696.90
Purchase Price: $13.94 (Including Commissions)
Total Shares Purchased: 50
Morningstar Category: N/A
PE Ratio: 9.50
Market Cap: $449 M
Yield On Cost: 8.18%
Frequency of Distribution: Monthly
Monthly Distribution: $.0950
Stock: PennantPark Floating Rate Capital Ltd is a closed-end, externally managed, non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing in Floating Rate Loans and other investments made to U.S. middle-market companies. The company believes that Floating Rate Loans to U.S. middle-market companies offer attractive risk-reward to investors due to a limited amount of capital available for such companies and the potential for rising interest rates. It uses the term middle-market to refer to companies with annual revenues between $50 million and $1 billion.
I think PFLT is a great stock to have in a dividend portfolio. It’s PE has consistently remained under 10 since 2012 currently at 9.5. My dividend yield is 8.18% on cost and it has not cut its dividend since inception in 2011. It’s a higher risk investment with a current market cap of only $449 M. However, I feel the risk/reward out weights the risk/loss.