I went back and looked at the first time I purchased BDCL. It's really depressing! I bought 1,000 shares at $28.00 of Feb 6th, 2013. What a disaster!
After that the BDC industry had a big dip because the stocks got kicked out of some indexes and all the index funds had to sell. The stocks all dipped again because their industry - which had blossomed after the financial crisis since no one was making risky loans - sorta became saturated so it was harder to find decent companies to lend to and earn a 10% return. The yield on the portfolios declined, and the shares along with them as investors were concerned with dividend reductions. Then the oil and commodity bust killed the industry again and all the BDC stocks got crushed since investors didn't know how energy company bankruptcies would hurt the loan portflolios.
BDCL went down to about $14 at one point. Maybe even $12?
So now BDCL is $21, I've lost $7.00 per share on that first purchase.
But, I've received 3 full years (2014, 2015 and 2016) of dividends of about $2.75-$3.00 per year, not exactly sure). Maybe I've receive $8.00 or more in dividends from that first purchase.
So that horrible investment is actually up a little bit (ignoring taxes). I bought the BDC industry in advance of all that bad news, and due to the high dividend payout, I'm about doing OK on the investment. That's pretty good if you ask me.
I've also bought BDCL many more times on the way down and also on the way back up, and I'm close to even on my investment IGNORING dividends. If BDCL gets to $22 I think my capital gain/loss is zero from ALL the buys is zero, but I will have collected the 15%-20% distributions along the way. I've sold off most of my individual BDCs, and put the cash instead into BDCL. Individual BDCs yield 9%, BDCL yields 18%. Hold for a few years, and that yield difference is hard to overcome.
Not sure why I'm telling you this, but there you are. |
