I have only been in KCAP long enough to receive two dividend payments and both times they were cash payments. But the company's latest release on the dividend again mentions the "DRIP" plan. If everybody gets more shares this is simply dilution. But from conversations during the previous payment I seem to understand most investors are receiving cash.

I find "paying" dividends with newly issued shares to not be a real reward to the investor and unsavory practice unless this is the only way the company can comply with their obligations as a BDC.

Opinions?

Sjd