These BDCs Yield Up to 15.6%. But Can We Trust Them?

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This high-yield sector is being taken to the woodshed by the Wall Street spreadsheet jockeys this year.

The contrarian opportunity? Big yields up to 15.6% in BDC Land. Some of these deals are trading for as little as 72 cents on the dollar.

Which means opportunists like us have been handed something rare: wild yields of 11% to 15.6% for as little as 72 cents on the dollar.

Business development companies (BDCs) are “Main Street bankers” because they do what Wall Street won’t: provide capital to small and midsized businesses that the big banks either ignore entirely, or won’t touch without demanding a firstborn as collateral.… Read more

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Generally speaking, we like monthly dividends better than quarterly payouts. I mean, why wait 90 days to get paid when “every 30” is possible?

Here’s another great thing about monthly divvies—they often have big fat annual yields attached to them.

For example, today we are going to discuss a batch yielding between 8% and 19.8%. On a modest $500,000 in savings, these monthly machines will dish between $40,000 and $99,000 per year!

If we randomly select a few monthly dividend payers, chances are we’ll earn (way!) more. Here’s the difference between the stock market’s monthly dividend stocks and the major indices:

Dividend heroes or yield traps?… Read more

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Let’s invest like private equity pros without needing seven figures. Yes, that’s right—PE-style starting for as little as $8.

Plus, yields up to nearly 13%.

No special access or options trades needed. Just a few clicks through our brokerage accounts buying regular ol’ tickers.

The sneaky dividend-dishing subjects? Meet business development companies (BDCs), publicly-traded firms that lend to small businesses.

BDCs were invented by Congress years ago to create a new type of lender to small businesses. They were also given the same mandate as real estate investment trusts (REITs): Return at least 90% of taxable income back to shareholders in the form of dividends.… Read more

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Monthly dividend stocks baby. Most income investors don’t even realize they exist!

Out of the few thousand stocks that trade publicly, only a few dozen pay monthly dividends. These hidden gems tend to have market caps in the hundreds of millions rather than billions.

Their relative obscurity is perfect for us. We’ll take them over their blue-chip quarterly cousins.

Quarterly dividends are pay days we prefer not to wait for. Plus, the payouts typically disappoint.

Let’s consider the distributions from a $500,000 portfolio split evenly among a group of five mega-cap dividend payers. These are uber-popular, widely held blue chips that you’ll see near the top of most major large-cap funds.… 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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