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

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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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Let’s talk income investments that are usually reserved for rich folks: deal-making private-equity (PE) funds!

Usually there’s a sizable fee to get into PE. Unless you know the secret knock at the back-door entrance, which is more our style anyway.

I’m talking about yields from 7% all the way up to 11%. With a cover charge as low as $15!

These business development companies (BDCs) exist thanks to a perfectly legal loophole that lets anyone with an IRA or brokerage account tap into not just one or two private-market companies, but dozens at a time. Instead of shelling out hundreds of thousands of dollars to hit a PE fund’s minimum buy-in, this access typically starts at about $15 to $20 per share.… Read more

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“Hey Brett, how’s business?”

“Awful,” I admitted. “But we’re a startup. If we can improve from awful to simply bad, it will be a big milestone for us.”

That was one economic meltdown ago, back in 2008. I had just left my “day job” to start my first company. On cue, the Great Recession descended upon us.

But the gloomy economic backdrop didn’t matter. Actually, it was a blessing. A recession is actually the best time to start companies and grow them.

As a startup with no money, we were able to cobble our limited resources together to get the company off the ground.… Read more

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