3 BDCs Paying Up to 13%, Trading for 71+ Cents on the Dollar

Our Archive

Search completed

There’s been a mini-wave of insider buying in the BDC (business development company) sector. This is worthy of our attention for two reasons:

  1. These firms pay fat yields (we’ll discuss 3 paying up to 13%),
  2. Their stocks are trading below book value.

This means we can buy these firms for as low as 71 on the dollar and get their dividend streams (and future cash flows) for free. (Remember when I told you to buy four big bank stocks when they were trading below book? If you followed my advice 18 months ago, you made a lot of money).

We’ll analyze each of these “pennies on the dollar” BDCs in a minute.…
Read more

Read More

If you’re a dividend fan and you spot an 18% yield, you’re going to sit up and take notice.

But your radar will also probably go up for another reason: you know outsized payouts like that pretty much always come with outsized risk too.

Which brings me to the weird funds I’m going to show you today.

Their 18% average yield masks something shocking: they’re not only dangerous but they’re not even income investments! They’re something else entirely—and if you fail to pick up on that and buy, they could blow a hole in your retirement portfolio.

Let me explain, starting with…

Where We Found These 18% Payouts

The funds I’m talking about are called exchange-traded notes (ETNs), a close cousin of exchange-traded funds (ETFs), another asset class I recommended staying clear of in a September 12 article.…
Read more

Read More

Many investors mistakenly believe that the world of private equity and its home-run potential are hopelessly out of reach. Privately held PE firms are difficult to access and often require seven-figure sums to start. Plus the handful of publicly traded PE companies are organized as limited partnerships – which means a hassle come tax time.

But there’s a promising group of easy-to-buy private equity firms hiding in plain sight: business development companies (BDCs).

And BDCs are dividend behemoths. In fact, I’ll highlight three today paying up to 9%!

Business development companies are the lifeblood of American small business, providing financing to small and mid-sized business in many instances when banks and other financiers consider the risk to be too great.…
Read more

Read More

Most business development companies (BDCs) have low profiles on Wall Street. Their relative obscurity makes them good vehicles for banking high yields – in fact, today we’ll discuss three that pay between 12% and 16% annually.

BDCs invest in small- and midsize businesses, the building blocks of entrepreneurial America. They were created by the government in the 1980s to help grow up-and-coming companies in a bid to stimulate business and create jobs. They provide debt, equity and other forms of financing to businesses that larger banks and investment firms shy away from.

They’re also income machines by law.

Their regulated structures require them to dole out 90% or more of their taxable income to shareholders in the form of dividends.…
Read more

Read More

About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

Sign up for our Newsletter

Categories