ING Prime Rate Trust (AMEX:PPR)
Invests in a diversified portfolio of non-investment grade senior floating rate loans made primarily to U.S. based corporations.
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The primary driver in PPR is the consistent divident that it pays out based on the type of debt in which the fund makes investments. Senior secured loans are far more stable in terms of value than CDS packages, etc.
Further, the demonstrated capability of missing only one month in the last 5 or so years for a dividend to shareholders demonstrates the management commitment to deliver value to customers.
This constant dividend is something that needs to be considered when examining PPR for a taxable account, however as a stable choice for someone who does not directly care for a bond fund in certain market conditions, PPR can offer a stable alternative to stock investments to broaden a diversified portfolio.
Recs
Well rounded and should move
Recs
This is a great yielding fund to park excess cash. A high dividend yield. There is risk with this fund being highly leverage.
Recs
Bottom spikes have been 5.17; 5.12; and 5.00 ~ 3/17/08 with real bottom support at 5.20+.
yield ~ 10% and 9+% discount. Closed end fund ARS risk is very
real but I'll take my chances at this point in time for the disc. & yield.
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This closed end fund always seems to underperform the S/P 500. But, the dividend is great ( now 9.7%) and it is relatively inexpensive. Watching it move is like watching a casket warp. But the dividends do put a nice smile on your face.
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Dividends are the key to this company's popularity, despite medium-to-attractive trailing P/E and not that great growth rates.
A safe bet for a year, to see what changes then.
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This closed end mutual fund consistantly pays a more than 7% dividend. They invest in self originated corporate loans and have an extemely low dafault rate. When people finally realize they can get 7% in a extremely low risk investment they will jump on board
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ING's prime rate trust is a great investment for income. Using the dividends, currently around 8% and the return on investment, this will outperform the S&P in a relatively safe way. The monthly dividend will return the money more quickly as well.
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