Trump 2.0 is Bullish for BDCs: 7 Yielding Up to 14%

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Trump 2.0 is Bullish for BDCs: 7 Yielding Up to 14%

Trump 2.0 will feature Wall Street-approved suit Scott Bessent as Treasury secretary. Bessent will advocate for financial deregulation and increased lending. Easier and faster money. Which will be a boon for private equity (PE) firms and business development companies (BDCs).

Today we’ll discuss seven BDCs yielding between 11.1% and 14.2%. They operate like PE shops—both will benefit from a friendly deal-making environment.

For our income investing purposes, we pick BDCs because it is easier to buy them.

We can buy BDCs individually as we would any stock. And BDCs can avoid taxes at the federal level by paying out at least 90% of their taxable earnings to shareholders in the form of dividends.… Read more

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60 Dividend Payouts Per Year with This 5-Click Group, Yields Up to 8.6%

Let’s talk about monthly dividend payers today because, well, why waste our valuable time with stocks that only pay quarterly?

I selected five for our review. We’re talking sixty dividend payments per year from this group. The most generous stock dishes an elite 8.6% annually. (The “laggard” yields a respectable 6.5%.)

Why don’t more companies pay monthly? The answer is predictable and disappointing.

Wall Street runs on a quarterly system. US-listed companies are required by the SEC to provide quarterly financial updates. So, most management teams pay their dividends quarterly as part of this process.

Hence, we salute the suits in shining armor who make the extra effort to pay us every single month.… Read more

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Should You Lock in These Monthly Dividends Up to 16.7%, Or Is It Too Late?

Today we’ll discuss five monthly dividends with yields between 7.3% and 16.7%. But let’s be careful—market participants are showing signs of greed right now.


Source: CNN

Monthly dividend stocks can help settle down a seasick portfolio. First, they pay every 30 days. What a concept! Their payments line up with our bills. Brilliant.

Quarterly payers aren’t as nice. Let’s look at a $500,000 portfolio split evenly among a group of five mega-cap dividend payers. This is a set of wildly popular blue chips you can find in the top 10 or top 20 holdings of just about every major large-cap fund—and despite this, they deliver a downright miserly sub-1% yield!… Read more

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5 Monthly Dividends Yielding 7.9% to 18.3%

To paraphrase the great Jerry Maguire:

Show me the money. Monthly!

I don’t know about you, but my bills come every 30 days. So, I demand the same from my dividends.

Monthly dividend payers are a “must have” in retirement. After all, who has the time to track down a quarterly payment? Afternoons are for craft cocktails, not accounting.

(My buddy makes a dangerously tasty absinthe old fashioned. Would wait until after sundown on that one.)

Speaking of bitters, that’s life as a quarterly dividend receiver (sorry, couldn’t resist). Monthly payouts are magical, and not just for passive income. These income vehicles also hold three core advantages against all other stocks and funds that pay less frequently:

  1. Better overall returns thanks to compounding: If all else (performance and yield) is equal, a monthly dividend stock, with dividends reinvested, will always return just a little more over time than stocks that pay quarterly, semiannually or annually because you can put your cash to work sooner, which means it can compound faster.

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Is This 24% Dividend (Paid Monthly!) Too Good to Be True?

“It’s my money, and I want it now!”

That’s the rallying cry of everyday folks in commercials for J.G. Wentworth, a financial services firm that offers lump-sum cash payments for structured settlements, annuities, lottery payments and more. (If you’ve never seen one of these TV spots, I suggest you try one out. They’re so bad they’re good.)

Every income investor could (and probably should) take a cue from its motto. To quote another spot: “Show us the money!”

Monthly dividend stocks, of course, pay more often than any other income investment. Dividend checks coming in every 30 days are especially handy for retirees who have bills to pay.… Read more

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These 1-Click “Tax Loopholes” Yield Up to 9.8%

If pricey stocks and low dividend yields have you frustrated, it’s time to consider publicly traded (and perfectly legal) “tax loopholes” that yield up to 9.8%. They’re as easy to buy as any stock or fund – in fact, they are stocks. They just happen to pay more.

Private equity investing is a proven way to print money. Problem is, it’s typically expensive for individual investors like you and me to get involved. Private equity minimums range anywhere from $10 million at the high end to “just” $250,000 depending on the fund. Frankly, that’s more than most normal retirement investors can or even should put in any one investment.… Read more

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These 3 Dividend Stocks are Dead Meat on the Next Pullback

The stock market is overdue for a correction (to say the least). And when the rising tide pulls back, certain dividend dogs will be exposed.

It’s all well and good to chase 5% and 6% dividends as “bond proxies” when the market continually grinds higher. It’s another story when stocks begin to wobble – and an entire year’s worth of yield is jeopardized in a down week!

Of course some dividend stocks will hold up just fine. But we’re going to pick on three that are likely to be exposed when the bullish music stops.

Gladstone Investment (GAIN)
Dividend Yield: 6.8%

Back in July, I highlighted Gladstone Investment Corporation (GAIN) as a business development company stud amidst a pair of BDC duds.…
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3 High-Yielding BDCs: 2 Duds, 1 Stud

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.…
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