(03-04-2022, 07:26 AM)ken-do-nim Wrote:(03-03-2022, 04:21 PM)stockguru Wrote:(03-03-2022, 01:59 PM)ken-do-nim Wrote: I thought I'd start a thread on Oxford Lane Capital, because it has been great for me but I don't see anybody else buying it. What I do is, when I have available funds, I grab a few shares every time it dips below $7.50.
Current Yield: 11.64%, pays monthly
Last Dividend Increase: January, where it went up from $.0675 to $0.075
1 Year Performance: up 18.39%
P/E Ratio: around 2.5
Article: https://seekingalpha.com/article/4489095...e-2022-cef
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
You need like a 100,000 in this one to make any moneyWhat is .07 cents going to do with a fund that trades in a $1 trading range? And this will get hit hard when interest rates rise. Just saying.
And the stock can go up .50 cents and you have a 25% return because it's so cheap. Like I said you need to invest a lot of money here to get a gain.
I respectfully disagree with, well, everything you wrote.
1. It pays an impressive yield. In fact, it is my top source of dividends.
2. It has held its ground with the rate increase concerns. It is the REITs that have suffered, not this type of CEF.
3. For at least this year, I still recommend a purchase every time it dips under $7.50, and you should keep your investment principal and enjoy the dividend. Will it cross over $8/share and stay there? No clue.
This is a yield trap. Lets face it
So lets just say you buy 100 shares at $7.50. You get paid out $28 a year in dividends. In 10 years you would be looking at $280 profit.
But if the stock dips to say $5.50 which it can with that yield your basically coming out even in the end.
To me this one isn't worth the time. Would much rather put in a monthly fund that pays over .15 or more each month. There's way better investments out there. I don't understand why you go for these big yield traps all the time
Your looking at yield here and that's not the way to look at this particular investment. Its a cheap stock that pays .07. That's it
And Fenders link explains it all
What else you got Ken lol