Oxford Lane: Don't Chase This 21% Yield
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Oxford Lane Capital Corporation offers a high dividend yield of 21% but is trading above its net asset value and has a poor total return track record. It is not well-positioned for a potential recession, making it a risky investment despite the attractive yield.
December 05, 2024 | 6:30 am
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Oxford Lane Capital Corporation offers a 21% dividend yield but trades above NAV and has a poor total return track record. It is not well-positioned for a potential recession, making it a risky investment.
The high dividend yield of 21% is attractive, but the fact that OXLC trades above its net asset value and has a poor total return track record suggests limited price appreciation potential. Additionally, its investments are not recession-resistant, which is concerning given current economic indicators suggesting potential downturn risks. These factors contribute to a negative short-term outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100