Allied Capital Corp (ALD)

With modest price appreciation, ALD is not all that exciting to look at, until you factor in the dividend. Not only does it offset any minor fluctuations in price, but when reinvested, adds up to a handsome return.

The nature of ALD's business makes it hard for most mortals (of which I am decidedly one) to evaluate the company. PE's and Debt/Equity ratios along with most other metrics don't seem to work here. If you borrow a little money and loan it out to someone else for more than it costs you, does that make it an asset or a liability?

To get comfortable with the stock, I bought a little and watched it. Then I bought a little more. Then I spent some time looking at their dividend history which goes back (successfully) for decades. It is now about 10% of my portfolio.

FWIW, I also like ACAS, which is in roughly the same business. I view owning both as "diversification", to a degree. ACAS is younger and a bit more aggressive. They will probably have a slightly higher return over time, but with more volatility. I own less ACAS than ALD, but not by a lot.

Well run Investment company. This has been a long term holding for all accounts I manage. While I don't understand all the businesses they invest in, management is transparent and have rosey excpectations. Finally, dividend yeild has been consistent year to year.

BLX sell off is probably an over reaction. Check out Steve Ellis' great work on BDC's
http://www.fool.com/investing/dividends-income/2007/01/08/an-investors-guide-to-business-development-compani.aspx

went down on word of hedgefund operator. strong company with great dividend. if DRP were incorporated into CAPS rating, a no-brianer

Greenlight is blowing the smoke but there is no fire. All this is creating is the opportunity for savy investors to buy. Greenlight has a self-interest short position on Allied, their lawsuit on behalf of the government, press releases, etc.. generate a great deal of noise. Yet thats all it is, enjoy greenlights supression of the stock price for the near term and gobble up shares while they are priced to move.

Strong performance in dividend increases backed by acceptable stock price appreciation, just ask say, David Einhorn.

Allied Capital is a solid business development company that churns out a reliable yield - ALD's historical performance is practically the poster-boy for the advantages of long-term DRIP investing. Not sure I like the recent stock offering at lower prices, but it will provide additional capital to take advantage of current market conditions.

Way too much debt!

I'm not positive, but this may no longer be rateable in the near future.

Premier business development company with a long history. Dividend yield is more than 8% and long term dividend growth rate is about 10% over ten years. The stock price is temporarily depressed because what I think is an overblown issue created by a short selling hedge fund.

Great div, steady growth. Sit back and ride.

This one is simple... Nice dividend. Nice trading channel. Solid company that has survived many challenges against it's integrity.

Buy in $28 to $29.50

Sell $31 to $32.50

Have fun... Oh and keep in mind the dividend swings. Seems you almost always are better off selling into the dividend date. People are willing to pay a premium. Buy back 3 days later. You'll make more money.

Allied Capital (ALD) Chairman/CEO Buys 50K Shares
11-09-2007 01:11:21 PM

Allied Capital Corporation (NYSE: ALD) Chairman/CEO, William L. Walton, bought 50,000 shares today at $22.32-$23, bringing his stake to 881,037 shares.

Officer, Justin Maccarone, bought 5,000 shares today

11-09-2007 01:52:37 PM

Allied Capital Corporation (NYSE: ALD) CFO, Penni F. Roll, bought 11,000 shares today at $22.49. NOTE: The Chairman disclosed a purchase of 50K earlier today and another officer bought 5K.

StreetInsider

Solid Company beaten down by panicked investors
Be greedy when others are fearful.
the coming 6 months will prove that ALD is keeping its dividend and this will lift up the stock price

This is a business development company that makes business loans, often with an equity interest. It's a different type of stock; it has slightly outperformed the S&P over the past 4 years but it also currently pays 7.8% interest which means that dripping it can result in a very favorable growth in assets.

The fact this companies shares have fallen so far has nothing to do with its fundamentals and everything to do the its association with an industry.

Shorts will be forced to cover as company reports strong and consistent earnings

Gonna sit on the yield until it gets back up to around 25.

it invests in low risk companies... it pays high dividends.

No insider trading.

will increas sooner its value