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Monthly Dividend Stock In Focus: Great Elm Capital
Article By: SureDividend
Tuesday, July 7, 2020 2:12 PM EDT
Income investors often see business development companies, or BDCs, as a strong source of income. Great Elm Capital Corporation is a BDC that pays an extraordinarily high yield of 24% after the stock lost half of its value due to COVID-19 weakness.
In this article: GECC
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Monthly Dividend Stock In Focus: Great Elm Capital
Adam Reynolds 8/10/2020 5:19:14 AM

Thanks for these thoughts on $GECC

Monthly Dividend Stock In Focus: Great Elm Capital
Stan Vasat 7/9/2020 9:43:43 PM

Thank you for very interesting analysis of the $GECC stock. As one of the shareholders of this stock I naturally come for its defense in few points.

First, I think it is fair to point out that possible vaccine or antibodies for the COVID-19 can be here by the October (at the end of summer there can be the results of three most prominent vaccines so far). This itself can be very significant for the GECC stock. You wrote in the article that they can keep this distribution for two more quarters. That would cover the period of uncertainty quite well making it my opinion quite safe stock.

Second is the declaration of the dividend itself. On the Jun. 29, 2020 the GECC declared its monthly dividend distribution until September (in shares mostly). As you rightly pointed out cut of the dividends is on the table, but I do see an effort of the distribution in shares as better solution than cutting whole dividend down. For me it is good opportunity to accumulate shares of the GECC, because each month my position is increasing and I do not see the need to sold my position as it slowly also average down my price. In addition, it increase my dividend by each passing month. I suspect GECC made shares distribution for the reason that shareholders actually hold the value of its stock. Of course current fall of price is pain 100% agree there.

My third point is that being invested in debt as GECC is, is actually great in current environment. Companies in order to survive will look for more cash. Looking to increase your current debt may actually be beneficial for GECC in the long run. As you also pointed out I also like how they are distributed in so many companies and as they are protecting their investments.

Have a great day everyone and do enjoy the summer a bit if possible.

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