2 BDCs to Buy Now and An 11% Payer to Avoid at All Costs

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2 BDCs to Buy Now and An 11% Payer to Avoid at All Costs

Do you want to generate income that increases along with interest rates, with the potential upside from private equity investments? A Business Development Company (BDC), a type of closed-end investment company, could be the answer you’re looking for.

BDCs were created by the U.S. Congress back in 1980, as a way to help small- and mid-size businesses grow. They invest in debt and/or equity and often provide operational assistance to the internal management team. Similar to real estate investment trusts (REITs), a BDC distributes at least 90% of its profits as dividends.

It’s the dividends that really make BDCs stand out in this rising interest rate environment, especially since trading volatility has spiked of late.… Read more

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Five 8-10% Yielders That Can Actually Grow Your Portfolio, Too!

Many investors think they need to choose between current income and price upside. They don’t.

In a moment, I’ll highlight five stocks paying between 8% and 10% with 40% upside to boot.

Let’s face it – growth matters. It’s the best way to retire on a nest egg of just $500,000:

How to Stretch Your Investment on $500,000

The table above assumes a nest egg of half a million dollars that yields 8% a year, and absolutely no dividend reinvestment – here, you’re putting every cent of income into your pocket. Look how much that $500,000 expands over just a few years as you’re able to achieve more capital gains out of it. Even if you’re conservative and want to assume just 4% in annual growth out of your portfolio, that’s an extra $240,000 after 10 years – a much better position to be in than if you settled for a no-growth portfolio by selecting subpar high yielders …
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