It is now three weeks since publication of the initial issue of 30 Day Dividends. To start out, I want to restate the idea that most of the trades recommended here are set up to take several months to run and hit the target prices and returns. The trade ideas I find usually need time to percolate into the market so that a larger slice of investors and traders come to understand what we plan to profit on from an early entry. The time frame may allow multiple chances for entry at an attractive price while we wait for the expected events to unfold and drive up the share price.
Here is a quick update on the current open 30 Day Dividends trade positions:
New Media Investment Group (NYSE: NEWN) remains almost completely undiscovered since its February IPO and the share price has cycled above and below the May 30 entry of $13.97 per share. Yesterday, June 20th, NEWM closed at $13.96. The announcement of an initial dividend should push the share price towards the target of $16.80 for a 20% gain.
BDC stocks including Medley Capital Corp (NYSE: MCC) dropped as a group in late spring, giving us an attractive entry price for a quarterly dividend swing trade. Today MCC is 2% above the $12.39 entry and slightly above the recommended $12.50 maximum entry. The next dividend announcement comes in late July, which should produce the target 8% gain with a two month hold.
LinnCo LLC (Nasdaq: LNCO) has moved up nicely from the $27.82 entry and the current $30.36 price plus one earned monthly dividend puts the gain this month at 9.9%. Currently the target price to close this trade is $31.00 per share, locking in an 11.5% gain. If you got into LNCO below $28, it would not be a bad move to take your profit now and put some of the proceeds into NEWM or the new trade idea discussed next.
NEW TRADE SETUP: One of the stocks I watch for cyclical dividend swings just went ex-dividend and should soon present a trade entry. PennantPark Investment Corp. (Nasdaq: PNNT) is dropping since going ex-dividend. The target entry price is $10.90 per share. This stock will be updated in the July newsletter, but I wanted to put the entry out to make sure you can pick up shares of PNNT if it drops a little more between now and July 1.
Look for new updates and trade set-ups from me shortly.