Gladstone Investments (GAIN)

[tessaduncan]

Dividend payout of 9.9%. Too good to be true? Thoughts please.



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[gauss]

Quick Thoughts

- Appearance of 1 day chart suggests that it is thinly traded.

- Appearance of 10 year chart shows long term concerns for loss of value

- How much of the 9% yield is a "return of capital"

Based on a 3 minutes review of GAIN.
gauss

 

[Texas Proud]

It is an investment company.... if they make bad investments you lose... if not, you make out OK...

There are others out there that do the same.... and yes, dividends are high..

The dividends are not qualified... so own this in a tax exempt account if you buy...


Business Development Company - Wikipedia, the free encyclopedia

 

[jim584672]

Looks like they are returning capital in the dividend. Be careful.
----
Gladstone Investment Corporation
September 30, 2014
A regular monthly dividend of $0.06 ...
the Company currently estimates that $0.034 per share of the dividend will be from ordinary income, and $0.026 per share of the dividend will be a return of capital.

 

[tessaduncan]

Thank you. You have confirmed my suspicions.