This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Main Street Capital Another stock that pays a monthly dividend is Main Street Capital (NYSE: MAIN) , which is a businessdevelopmentcompany (BDC) that invests in the debt and equity of lower-middle-market companies. It's also grown its net-asset value (NAV) by 130% since 2007. in June.
Most American shareholders see their quarterly payments fluctuate with currency exchange rates but the payout has grown every year, in British pounds, since 2007. Luckily for income-seeking investors, the noncash charges won't affect the company's ability to steadily raise its dividend commitment. At recent prices, it offers a 9.8%
The company's dividend yield of 9.49% would enable you to make well nearly $3,638 in passive income this year. Ares Capital offers such a high yield primarily because of its business structure. Of course, the company must generate plenty of income in the first place to have enough to pay dividends.
Its business model is simple: It buys properties, rents them out, and splits that rental income with its investors. As a REIT, the company must pay out at least 90% of its pretax profits as dividends to maintain a favorable tax rate. BDCs fill that gap by offering higher-interest loans to those companies.
Ares Capital is a businessdevelopmentcompany ( BDC ) that provides financing for middle-market companies (businesses that generate between $10 million and $250 million in earnings before interest, taxes, depreciation, and amortization ( EBITDA ) every year). Image source: Getty Images.
As a businessdevelopmentcompany (BDC) , it returns at least 90% of profits to shareholders like me in the form of dividends to be exempt from federal income taxes. The company expects to grow its distribution by 3% to 5% annually. My position in Ares Capital should make me around $1,843 in income this year.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content