IB Net Payout Yields Model

Buy The BDC With A Buyback Yield Of 13%

The major buyback by American Capital, Ltd (ACAS) continued unabated in the second quarter. The company announced it has now repurchased 70.4M shares since shifting from paying dividends back in Q3 2011. The total buyback has amounted to $748M over the last 8 quarters at an average discount to a continuously soaring NAV of nearly 40%. Nonetheless, the stock continues to trade at a substantial discount even after demonstrating to the market every quarter that it has the financial ability to spend that much cash.

American Capital is a private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $21.2 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $112 billion of total assets under management (including levered assets).

Read the full article at Seeking Alpha.

Disclosure: Long ACAS. Please review the disclaimer page for more details. 


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