chazblod

American Capital Strategies: Dividend Analysis

Ira Wagner and his team know their stuff...when it comes to mezzenine financing and running a high-dividend company, the management team's ability to plan and execute and adapt to an ever-changing environment is critically important. As an investor, your highest risk in the long-term is either a change in management, or a major and expensive business endeavor going south. High-yield companies like ACAS have to issue new stock whenever they invest in a major new business endeavor like branching into Europe, so your shares will get diluted from time to time...don't get nervous, though, as long as the management team remains in place because they know what they're doing and they don't issue new shares lightly...