The financial services sector includes nineteen industries all related to managing money. Industries include: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.
Today I’m reviewing an asset management firm named MVC Capital, Inc. It’s trading ticker symbol is MVC. Back on December 26 I gave a similar assessment of MVC.
MVC provides equity and debt investment capital to fund growth, acquisitions, and recapitalizations of small and middle-market companies as an externally managed, non-diversified, closed-end management investment company.
The company pursues these as a business development company. MVC Capital, Inc. was founded in 1999 and is located in Purchase, New York, a suburb of Westchester County outside of the NYC metropolitan area.
I use three primary keys to measure dividend funds or equities like MVC Capital, Inc.(MVC):Â
(1) Price
(2) Dividends
(3) Returns
After those three, I’ll use four more keys to unlock an equity or fund in which to invest.
The first three keys, however, best test whether a company or fund has made, is making, and will make money.Â
MVC Price
MVC’s price at yesterday’s market close was $10.52 per share.The firm has provided both income and price appreciation for investors. A year ago its price was $8.55. Meaning it’s price is up $1.97 in the past year.Â
If MVC does the same in the coming year its price will increase from that $10.52 to $12.49 per share or about 19%.
MVC Dividends
MVC’s most recent quarterly distribution was $0.15 per share declared December 19 and paid out January 8th. Â
The annual dividend projected for 2018 is estimated at $0.60 per share payable monthly at $0.15per quarter in January, April, July, and October.
The yield from that $0.60 annual dividend would be 5.7% at yesterday’s $10.52 price.
