Chicago Mike

American Capital Strategies: Dividend Analysis

Well, the stock price of ACAS has not faired so well over the last few months! I don't want to get out now and lock in losses, especially since I've read that folks feel confident they will continue to pay out the high level of dividends. Hanging in there for the long haul.

Anyone else looking to get out?

American Capital Strategies: Dividend Analysis

Hi Dobromir,

Very informative analysis! I also bought these shares in January when I saw that it was yielding around 11%, and S&P ranked it a Strong Buy (5 stars). I will admit I did little analysis beyond reading S&P's review of the company, so I keep waiting for the bad news. Usually when the story sounds too good to be true, it is! Last time I bought a stock with a nice yield (Bank One was yielding 5%), they cut the dividend shortly thereafter! It looks like this investment firm has been able to consistently bring in profitable investments. What do you see as the biggest risk to watch out for with this stock?

Mike