Latest Stock Buy: 100 shares of PNNT at $4.69 per share

Updated: 14 April, 2021 seen 21

On December 31, 2020, I bought 100 shares of Pennantpark Investment Corp (PNNT) paying $4.59 per share.

With its quarterly dividend payout of 0.12 dollars per share, this latest buy has a dividend yield of 10.45% (before tax) and will pay us an additional $8.00 (before tax) every quarter. Awesome.

There are two simple reasons we like this stock - it has a high dividend yield of about 10%, and we can trade both put and call options. PNNT has dividend payments in January, April, July, and September. We will get a small boost in these months.

Also, we are looking to take at least an extra 10% from this stock, by selling Covered calls on it, see: Covered Call on PNNT - Potential income return 6.01% in 169 days (12.92% annualized)

By now PNNT takes 2.31% from our US stock portfolio, also this is one of the smallest positions in the portfolio.

About PennantPark Investment Corporation

PennantPark Investment Corporation [NASDAQ: PNNT] offers investors specialized exposure to various forms of debt and non-controlling equity financings across the capital structure. PNNT invests in middle market companies located primarily in the U.S., with a proven management team, competitive market positions, strong cash flow, growth potential, and viable exit strategies.

PNNT’s disciplined approach ensures that investments have an attractive return profile in relation to risk.