Latest Stock Buy: PNNT

Updated: 26 December, 2019 seen 45

On December 19, 2019, I bought  (got assigned) 100 shares of PennantPark Investment Corp. (PNNT ) at $7.50 per share. 

With its quarterly dividend payout of 0.18 dollars per share (before tax), this latest buy has a dividend yield of 9.6% and will pay us an additional $18 every quarter. Awesome!

PNNT is paying the dividend in the following months: January, April, July, and October

This is already the third time I'm buying PNNT stocks, I first bought PNNT back in September 2018, and then in May 2019

The latest buy actually comes from my options trades, back in July I made in the money (ITM) put sell -   PNNT DEC 20'19 7.5 @1.4 or I agreed to buy 100 shares of PNNT,  for a price of $7.50 per share by December 20, 2019, and for that, I got paid $1.40 per share or $140.

Now on December 19, 2019, PNNT was actually trading at $6.55. Despite I paid $7.50 (as I was obligated) I actually made a nice profit already or got PNNT on discount:

7.50-1.40=6.1

My real buying price for PNNT stock was just $6.1 per share. Awesome. I call it a really good bargain. With the real price set at $6.1 this buy has a dividend yield 11.80%

By now PNNT takes 8.85% from our US stock portfolio, and also is one of the biggest dividend payers in the portfolio by now. ​

In total PNNT now contributes about $156.06 (after tax) yearly to the dividend income 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.