Reminder – Fifth Street Finance Corporation (FSC) Goes Ex-Dividend Soon

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July 10, 2013 by apicomely

European finance ministers ready to welcome Latvia into euro, despite economic problems

As a percentage of FSCs recent stock price of $10.75, this dividend works out to approximately 0.89%, so look for shares of Fifth Street Finance Corporation to trade 0.89% lower all else being equal when FSC shares open for trading on 7/11/13. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen or click here to find out which 9 other stocks going ex-dividend you should know about, at DividendChannel.com Below is a dividend history chart for FSC, showing historical dividends prior to the most recent $0.0958 declared by Fifth Street Finance Corporation: In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from FSC is likely to continue, and whether the current estimated yield of 10.69% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of FSC shares, versus its 200 day moving average: Fifth Street Finance Corporation 200 Day Moving Average Chart /> Looking at the chart above, FSCs low point in its 52 week range is $9.66 per share, with $11.13 as the 52 week high point that compares with a last trade of $10.71.

Progress on Housing Finance Reform

The total losses of Fannie and Freddie during the crisis were equal to about 4 percent of the firms combined assets. The firms were shielded by homeowner down payments and by private mortgage insurance before they had to make good on their guaranteed securities, but the housing price collapse of more than 30 percent combined with concentrations of Fannie and Freddies risk in key bubble states such as Nevada combined to generate losses that wiped out the firms thin capital cushions of less than 1 percent of their assets. With a 10 percent capital requirement, the firms would easily have made it through the worst housing cycle in recent memory. To be sure, a 10 percent capital requirement is not the same as the 100 percent in a fully private system. But a fully private system is neither feasible nor stable. By the standards of the recent housing debacle, the Corker-Warner legislation provides considerable protection for taxpayers. Still, any government guarantee gives rise to moral hazard, since investors will naturally seek to obtain government backing on risky mortgages that provide a high private upside if the loan works out, and a loss for taxpayers if it does not. The Corker-Warner legislation creates an empowered regulator with a mandate to ensure that underwriting standards remain high.

FSC+Dividend+History+Chart

The Baltic state has won approval to become the 18th European Union country to use the euro from the EU’s executive Commission. Finance ministers are expected to give their assent in Brussels on Tuesday. Finance ministers brushed aside the idea that it might be difficult to enlarge the eurozone while the region struggles to support cash-strapped members, like Greece and Portugal. Irish Finance Minister Michael Noonan called Latvia’s adoption of the euro along with Croatia’s recent joining of the EU “absolutely amazing when you pull back from the day-to-day workings of the crisis.” Latvia will start using the euro at the start of 2014.

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