Business Development Corporations (BDCs)

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Lock in a 500% Return in 7 Years

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 […]

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This Just Became the Best BDC for Income

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 […]

The Wall Street Journal Finally Gets a Clue

The Wall Street Journal Finally Gets a Clue

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 […]

Why You Need to Be Buying BDCs Right Now

Why You Need to Be Buying BDCs Right Now

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 […]

When a Secondary Stock Offering is Great News

When a Secondary Stock Offering is Great News

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 […]

New Name, Same Great Income Stock

New Name, Same Great Income Stock

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 […]

These Stocks Are on A Dividend Increase Bonanza

These Stocks Are on A Dividend Increase Bonanza

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… […]

Make Income From Last Week’s Market Drop

Make Income From Last Week’s Market Drop

Last week the U.S. stock market experienced its biggest one-day decline in several years. A rapid yield increase on the 10-year Treasury note triggered the stock market route. The market runup in January was due to investor expectations that the Federal Reserve would soon start to ease interest rates.February reversed that enthusiasm, and the stock […]