Wall Street received a painful reminder last year that the stock market is not a free money machine. Stock prices don't always go up, and the risk of them falling, even temporarily, is very real. However, with dividends, you can deliver consistent cash profits and avoid having to sell at inopportune times. And there are few sectors that produce higher dividends than his BDC stock, which is among the best on the market.
A BDC (Business Development Company) is like a private equity fund to the average person, but with some key differences. Private equity funds are opaque, have long lock-up periods, and tend to be limited to wealthy individuals and institutional investors, whereas BDCs are publicly traded on stock markets and are open to anyone with a brokerage account. It's available to everyone and completely transparent.
BDC primarily makes debt and equity investments in “middle market” companies. These companies are generally a bit too large for bank financing, but not large enough to go public through a financial institution. Initial public offering (IPO). They invest on the proverbial Main Street…at least, this is the closest to Main Street on Wall Street.
Like their cousins, real estate investment trusts (REIT), BDCs were created by Congress to encourage investment in the real economy, and both benefit from tax incentives and are exempt from income tax at the corporate level as long as they pay out at least 90% of their net profits as dividends. There is no payment.
This is why BDCs and REITs generally best dividend stocks Achieves high yield. They are legally required to pay almost every red cent, and since there is no tax, they can pay more cash.
Data is current as of October 30th. Dividend yield is calculated by annualizing the most recent dividend and dividing it by the stock price.