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Before you plow every penny you can find into these two stocks, it's important to remember that an especially high yield means the market is worried the underlying business can't continue meeting and raising its dividend commitment. Here's why these two stocks could be far less risky than their ultra-high dividend yields suggest.
With a steadily growing telecom business, though, its payout could rise at a low single-digit percentage throughout your retirement years. PennantPark Floating Rate Capital PennantPark Floating Rate Capital (NYSE: PFLT) is a businessdevelopmentcompany.
PennantPark Floating Rate Capital PennantPark Floating Rate Capital (NYSE: PFLT) is a businessdevelopmentcompany (BDC), which means it legally avoids paying income taxes by distributing at least 90% of profits to investors as a dividend. As its name implies, it only lends out capital at floating interest rates.
Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) are a pair of well-manged businessdevelopmentcompanies (BDCs) that offer eye-popping dividend yields. banks have been increasingly hesitant to lend to businesses directly for decades. Just three companies representing 1.5%
However, the US investor has been involved in the Costa Group journey for much longer than that, having been a majority owner of the company prior to its 2015 initial public offering (IPO) on the ASX with its first equity stake acquired in 2011, back when its name was Paine + Partners.
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