All articles tagged with #business development companies
The article highlights five ultra-high-yield dividend stocks that investors should consider for their portfolios: Hercules Capital, Horizon Technology, Ares Capital, Altria, and Western Midstream Partners. These stocks offer substantial dividend yields and have strong long-term performance, making them attractive options for generating passive income and mitigating stock price volatility.
Retail investors can tap into the high yields of private credit by investing in business development companies (BDCs). BDCs lend to small or medium-sized businesses that don't have access to public debt markets. These companies typically pay out 90% of their earnings as dividends and offer annualized yields ranging from 6% to over 16%. Some reliable performers in the BDC space include Blue Owl Capital, Ares Capital, Golub Capital BDC, Oaktree Specialty Lending, and Sixth Street Specialty Lending. Investors can also consider the VanEck BDC Income ETF for diversification. However, it's important to carefully evaluate BDCs as they can be vulnerable to economic downturns and their performance may not always match their dividend payouts.
Ares Capital (ARCC) and Oaktree Specialty Lending (OCSL) are two attractive defensive double-digit yielding Business Development Companies (BDCs) that offer potential for retirement income. Both companies have well-diversified portfolios of senior-secured loans and strong underwriting performance. They are positioned to benefit from rising interest rates and have investment grade credit ratings with solid balance sheets. ARCC has a history of dividend growth and benefits from its large scale and relationship with Ares Management, while OCSL has shown strong performance since being managed by Oaktree. Both dividends appear safe and have the potential for further growth. With attractive valuations and the potential for total return generation, these stocks are suitable for investors, particularly retirees looking to boost their passive income stream.