September has approached yet again. Historically September is a month to be feared in terms of losses. As a dividend investor I'm not particularly afraid of loses in the market. It may be hard to see a drop in overall account value but also as a value investor it increases dividend yield.
The important thing to remember about loses also is to make sure that you're invested into quality dividend companies. My portfolio lately has endured the ups and downs of the markets and I'm in no way concerned about the current headwinds either. My Portfolio has continued to chug along and provide me with more dividend payments which only serve to increase my current positions and yield me even more dividends.
I have added yet another company into my portfolio and I want to welcome my 19th dividend stock into my Independence Fund. With this latest addition, my portfolio will now pay me 76 dividend payments per year! I still have a goal of reaching 20 companies by year end and I already have my sights set upon many more great dividend companies.
On 9/6/2017 I purchased 75 shares of White Horse Financials. I purchased in at $14.14 for a total value of $1,065.45. This added a whopping $106.50 to my annual dividend income which now has my total expected annual dividend income at $1,753.19, This was a rather large bump due to the high yield this company provides. I wanted to add a bit more risk into my portfolio as I have been doing some research into a few higher yielding companies and I feel that this is the best horse to bet on. I've been watching this stock very closely over the past month or so and I was telling my self that I'd jump in as soon as the company announced their next dividend payment. That time has finally come and this will make a great small position within my portfolio.
WhiteHorse Finance, Inc. is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940.
WhiteHorse Finance's investment objective is to generate attractive risk-adjusted returns for our investors primarily by originating senior secured loans to privately held small-cap companies across a broad range of industries. We believe that market inefficiencies and an imbalance between the supply of, and demand for, capital in the small-cap credit market creates attractive investment opportunities.
Our investment activities are managed by an affiliate of H.I.G. Capital, one of the leading global alternative asset managers focused on the small-cap market. H.I.G. Capital manages $22 billion of capital through a number of leveraged buyout, credit-oriented and growth capital funds focused on the small-cap market.*
Here are some of the stats that I'm really loving about this company and why I decided to purchase in!
P/E at 7.71. This is an extremely helpful metric to determine the current valuation of the company. The current average for the Industry is 18.48. This right here proves to me that this company is undervalued in terms of it's peers.
Payout ratio is at a modest level of 75.94%. This is a very good spot to be due to the high yield this company offers and the level of Free Cash Flow they generate.
Free cash flow is only at 19.56 million but I'm not expecting a massive cash hoard such as the bigger blue chip names I typically invest in.
Revenue growth is currently at 10.28% and more importantly dividend yield is at an astounding 9.8%. This is a tricky one however because a lot of dividend investors will get caught up into high dividend yield traps. The company has been paying the same dividend of .355 per quarter for the past 5 years and as long as this company continues to pump out the growth I'm willing to stick around and accumulate some nice dividends.
Let me know what you think about my latest purchase in the comments below and if you have any experience with high yield dividend stocks. Thanks for reading.