Fox Squirrel

Dear reader

VPC is in a period of wind down. Its dividend on a “headline” basis is one of the strongest on the market at an alleged 19.51% per annum (according to HL).

But is that good value for money? Is it “real” and sustainable? And should existing shareholders hold on, average down, or exit?

For a start, the true dividend is 18.3%. That’s because the dividend is/was/has been 2p per quarter (backed by strong returns on VSL’s loan portfolio) but due to a 0.11p/share B shares capital return this has now been reduced to 1.89p per qtr. 7.56p on a 41.2p ask price is 18.3%.

Still, a chunky old divvy covered by earnings.

For anoraks only.

Is VSL a wee foxy lass?

“The Oak Bloke from The Oak Bloke’s Substack” <theoakbloke@substack.com>