Thursday, January 30, 2025
I read a lot of articles analyzing the stocks of business development companies (BDCs). The article authors invariably classify BDCs trading at a premium to book value as too expensive, and the “deals” are the BDCs that trade at a discount to book value or NAV. There are two reasons I believe this is the […]
Main Street Capital (MAIN) usually sports the lowest yield and largest premium to NAV. Investors ask me why I recommend Main Street Capital with such a low yield compared to other BDCs and why I am willing to pay such a premium for the shares. As a start, based on its regular monthly dividend, Main […]
As the Federal Reserve has indicated its willingness to keep interest rates higher for longer, the broader stock market has struggled with predicting the effects of rates staying up and also trying to predict when the Fed will get around to the initial rate reductions. Investors can take advantage of the higher-for-longer meme by investing […]
Qurate Retail saw its business decimated by the pandemic-related supply chain issues. The company’s share price cratered. But the investing public has not yet noticed the company is on its way to a recovery. With a locked-in return, the preferred shares offer a compelling value to patient investors. Here’s how… Qurate Retail (QRTEA) operates the […]
Business development companies (BDCs) operate under special rules that limit the amount of debt they can use, and they must pay out 90% of net investment income as dividends to investors. That makes them excellent investments for those looking for income. And the best one in the business IPOd just four years ago, and has […]
I was pleasantly surprised to read a recent Wall Street Journal article highlighting the investment benefits of Business Development Companies (BDCs). The article included a couple of BDCs that are on my Dividend Hunter recommended portfolio. Let’s dig in, and take a look at why these BDCs are such great income investments… The WSJ article […]
One of the favorite investments for income-seeking investors that our colleague Tim Plaehn recommends is business development companies, or BDCs. Business development companies provide equity and debt financing sources for small-to-medium-sized corporations. They act as commercial lenders to companies that cannot get financing through the banking system. Currently, BDCs hold a quarter of assets under […]
A secondary stock offering comes with a sharp drop in a company’s stock price. Rapid price declines make investors nervous, wondering if the company is facing troubles. The recent sale of 6.5 million new shares by one of my favorite high-yield dividend stocks highlights how this type of transaction can benefit investors. Let me show […]
Business development companies (BDCs) are a high-yield investment sector benefiting from higher interest rates. One of the largest BDCs recently changed its name, giving me a good excuse to review this under-the-radar, high-yield stock – one of my favorites… On July 6, BDC Owl Rock Capital Corporation, stock symbol ORCC, changed its name to Blue […]
It’s a bonanza for income investors out there. Each day, I am shocked that another dividend increase out of the business development company (BDC) sector hits my inbox. Today I want to provide a list of BDCs that have announced dividend increases and/or supplemental dividends – and which ones to look at for your portfolio… […]
