What’s better than a 9.3% dividend stock? How about one that’s poised to pop as interest rates rise?
Business development companies, or BDCs for short, are overlooked by most income investors. That’s too bad for them because these dividend deals can be pretty sweet.
Especially when rates are rising.
BDCs cut loans to small businesses. Their inflation-friendly component comes from floating rate loans. BDCs that lend this way make more money when rates rise.
BDCs came to life in 1980 when Congress whipped up these tax-advantaged entities. Like the REITs we all love, BDCs are cleared by Uncle Sam for tax-free profits, provided they dish most of their green as dividends.… Read more