Re: PSEC article - board
Well, that's a silly statement that dividends are a "fact." They are a fact WHEN DECLARED. How many dividends have been cut when a business turns south, and then what happens to the stock price?
Stagg has to resort to linguistic (that's the study of language) gymnastics when he can't discuss the business of a company whose stock he invests in. I'm not an expert on different businesses of the stocks that I invest in. But I try to learn so that I can make better judgments about the companies that I invest in.
I note that Mike Milken created the junk bond market because he realized that not all below investment grade bonds were worthless. Positive returns that are competitive with returns in other asset classes could be made by understanding the differences in different high yield securities.
Or you could take Stagg's blind squirrel approach and buy the 2 x mortgage REIT ETN without understanding that it could go to zero, or the Washington Prime Group preferred and watch it go bankrupt.