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If reading analyst reports and media rags are what you consider "fundamental" analysis then you are only asking for trouble.
If you want to deal in fundamental analysis you should learn how to tear apart a Financial report and not depend on others, who may have their own agenda, doing it for you.
For example in your example of Prospect Capital Corp.....it has a monthly dividend with a 13% yield paying $0.111/share/month
SO....this is not a stock that one would buy for a day trade or even a short term swing of 3-4 weeks....you buy it for the dividend....a cheap stock of about $10/share...if you had say 10,000 shares you would be making $1110.00 in dividends every month.
The big questions you must ask....from a FUNDAMENTAL point of view are:
1. Has this company ever defaulted on its dividend payment?
2. Has the dividend payout risen or fallen over the past years?
well...to answer these questions you look for the answers either by combing through their financial records
You would find out that prior to 2010 the dividend was quarterly and after that the dividend was monthly.....this company NEVER missed a dividend payout and the dividend rose constantly since 2010...there was a drop in payout from $0.40/share/quarter to $0.10/share/month gut over the last 4 years the dividend (and share price has been inching upward)
FROM A FUNDAMENTAL point of view a good benchmark for evaluating a dividend stock is: what happened to this stock during the crash of 2008 -2009.
Well if you check out that chart I gave you.... not only did the dividend not miss a payout but the payout actually had a slight increase through this time....check out JPM, C and BAC as to what their dividend profile was like then.
I love that quote... talk about definitive...hardly an analyst I would follow. Since he wrote the next article I would completely ignore him as he cannot make up his mind
If you are going to take advice from sources like Motley Fool and Seeking Alpha find an analyst who consistently makes good analysis of a stock....all analysts are not equal.
Better yet....learn how to do it yourself ......... that is the best way.
Based on the fact that the dividends for this company are cast in concrete until December and its past performance, especially during the crash, if I owned the stock I would probably look to increasing my holdings on the dip.
Can you help answer these questions from other members on NexusFi?
All good points and I understand what you are saying.
As to the motley fool I don't subscribe to them either...... The paste up of the reports was only an illustration regarding the wide range of opinions sometimes even buy the same guy who appears to be bipolar and can't decide weather PSEC is a good buy or a bad one..
As to PSEC I agree it is an income type stock that would be better used as such and not a short term trade as a rule, but not entirely eliminated from that arena either.
