Prospect Capital Corporation (PSEC) got off to a rough start this month with a dividend cut. Prospect Capital cut its dividend to 8.33 cents per month from 11.1 cents. But even after the reduction, PSEC sports a dividend yield of 12.1%. Not bad.
A 12% dividend is nothing to take lightly. Given that U.S. stocks are priced to deliver flat returns for the next 7-10 years, it’s never been more important to get paid in cold, hard cash.
But if you really want to know why I’m on Prospect Capital, take a look at the following chart of recent insider buys:
| Insider | Position | Date | Buy/Sell | Shares | Trade Price ($) | Cost |
|---|---|---|---|---|---|---|
| Eliasek M Grier | COO | 12/9/2014 | Buy | 25,000 | $8.31 | $207,800 |
| Brian H Oswald | CFO | 12/9/2014 | Buy | 63,500 | $8.35 | $530,200 |
| John F Barry | CEO | 12/8/2014 | Buy | 132,200 | $8.46 | $1,118,400 |
| Brian H Oswald | CFO | 12/2/2014 | Buy | 162,500 | $9.12 | $1,482,000 |
| Eliasek M Grier | COO | 12/2/2014 | Buy | 50,000 | $9.10 | $455,000 |
| John F Barry | CEO | 12/1/2014 | Buy | 115,000 | $9.08 | $1,044,200 |
| Eliasek M Grier | COO | 11/10/2014 | Buy | 5,000 | $9.56 | $47,800 |
| Eugene S Stark | Director | 11/10/2014 | Buy | 1,512 | $9.40 | $14,200 |
| John F Barry | CEO | 11/10/2014 | Buy | 110,000 | $9.57 | $1,052,700 |
| Eliasek M Grier | COO | 9/16/2014 | Buy | 5,000 | $10.10 | $50,500 |
| John F Barry | CEO | 9/16/2014 | Buy | 100,000 | $10.17 | $1,017,000 |
| Eliasek M Grier | COO | 8/29/2014 | Buy | 20,000 | $10.26 | $205,200 |
| Eugene S Stark | Director | 8/28/2014 | Buy | 4,000 | $10.32 | $41.300 |
| Brian H Oswald | CFO | 8/27/2014 | Buy | 27,300 | $10.40 | $283,900 |
| John F Barry | CEO | 6/13/2014 | Buy | 100,000 | $10.37 | $1,037,000 |
| John F Barry | CEO | 6/12/2014 | Buy | 100,000 | $10.33 | $1,033,000 |
| Eugene S Stark | Director | 6/12/2014 | Buy | 1,000 | $10.27 | $10,300 |
| Brian H Oswald | CFO | 6/12/2014 | Buy | 30,000 | $10.25 | $307,500 |
| Eliasek M Grier | COO | 6/12/2014 | Buy | 24.000 | $10.28 | $246,700 |
| John F Barry | CEO | 3/20/2014 | Buy | 100,000 | $10.86 | $1,086,000 |
