There’s been a mini-wave of insider buying in the BDC (business development company) sector. This is worthy of our attention for two reasons:
- These firms pay fat yields (we’ll discuss 3 paying up to 13%),
- Their stocks are trading below book value.
This means we can buy these firms for as low as 71 on the dollar and get their dividend streams (and future cash flows) for free. (Remember when I told you to buy four big bank stocks when they were trading below book? If you followed my advice 18 months ago, you made a lot of money).
We’ll analyze each of these “pennies on the dollar” BDCs in a minute.…