Will the Fed Really Wreck These 10%-Plus Payers?

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Will the Fed Really Wreck These 10%-Plus Payers?

Wall Street suits tend to avoid business development companies (BDCs). That’s a mistake. For us income seekers, these “Main Street bankers” can be the best dividend machines in the market.

Forget the “penny yields” most stocks pay. BDCs can dish divvies between 10.6% and 12.6%. Unlike vanilla blue chips, BDCs are mandated by Congress to flip us at least 90% of their taxable income.

In other words, the dividends are a “built in” feature.

Of course we don’t just close our eyes and buy any 12% payer. Some BDCs are dividend machines, others are disasters. Our job: separate the stars from the scrubs and only buy the cash cows.… Read more

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How To Invest Like the “Smart Money” (With Dividends up to 13.1%!)

The stock market is currently caught up in its deepest slide since July. We contrarians are prepared to move quickly for deep-dip-buying opportunities.

Right now, I’m paying close attention to already-high-paying corners of the market, where we can get 9.4% to 13.1% yields right this very minute. I’m talking about from the business development company (BDC) industry, where those sky-high yields aren’t rare—they’re the norm. In fact, right now, if we threw darts at a board of BDCs, we’d be likelier to hit a double-digit payout than one in the single digits.

But it’s not just the yields I love—it’s the access.… Read more

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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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