MCG Capital Corporation (NASDAQ:MCGC) is a solutions-focused financial services company providing financing and advisory services to a variety of small and medium-sized companies throughout United States with a focus on growth oriented companies. The Company’s portfolio consists mostly of companies in the communications, information services, media, and technology, including software and technology-enabled business services, industry sectors. (Source: Bigcharts)

I could not find a three-year monthly option on stockcharts so instead I will present the breakout from consolidation using bigcharts software. Remember that the longer a stock consolidates, the more powerful the move will be when it does occur. Although the stock is moving hard, I do expect a flag or some sort of pause in price in order to test new support and continue forward.

Some of the key high yield dividend play statistics include the following:
• Current Dividend Yield: 8.36% (Annual)
• Average Daily Volume Last Quarter: 438,664
• Return on Equity: 13.88%
• Market Capitalization > 1,171,907,000

Source: Bigcharts

Our Recommendation: This is an excellent long-term play so if you are planning on holding on to this security for longer than a year you may want to place a 10-15% stop loss beneath your purchase price to give the stock room to maneuver.

Note: MCGC will not be placed in the Jutia Portfolio at this time due to our 5% stop loss requirements.