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Ares Capital Ares Capital is a businessdevelopmentcompany ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profit to shareholders as a dividend. For decades now, American banks have been increasingly hesitant to lend money directly to midsize businesses.
Ares Capital Ares Capital is the world's largest publicly traded businessdevelopmentcompany ( BDC ). These specialized entities are popular among income-seeking investors because they can avoid paying income taxes by distributing nearly all of their earnings to shareholders in the form of dividend payments.
These businesses aren't flashy, but they do produce reliable profits. Plus, they're committed to distributing earnings to their shareholders. If we ignore a few exceptions in 2018, the company has maintained or raised its monthly payout since it began distributing dividends in 2011. Image source: Getty Images. and higher.
On the other side of the coin, publicly traded companies that don't offer a payout trudged their way to a more modest 4.27% annualized return between 1973 and 2023 and did so while being 18% more volatile than the S&P 500. In other words, they're just the type of businesses that are expected to increase in value over an extended timeline.
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%
telecom businesses with a nationwide 5G network, investors can also look forward to steady gains over the long run. PennantPark Floating Rate Capital PennantPark Floating Rate Capital is a businessdevelopmentcompany ( BDC ) that lends to mid-market companies earning between $10 million and $50 million annually.
Led by PSP, the consortium also comprises entities controlled by the world's largest berry company Driscoll's Inc and the British Columbia Investment Management Corporation (BCI). Accordingly, the Costa board has unanimously recommended that Costa shareholders vote in favour of the scheme, subject to the various customary conditions.”
See the 10 stocks Dividend yields among most S&P 500 stocks aren't appealing, but there are a few businessdevelopmentcompanies (BDCs) that deserve more attention from income-seeking investors than they've been getting. It's been able to raise or maintain its dividend payout every year since it started paying one in 2011.
PennantPark Floating Rate Capital PennantPark Floating Rate Capital is a businessdevelopmentcompany ( BDC ) that lends to midsize companies, which U.S. Income-seeking investors like BDCs because they must distribute at least 90% of their earnings to shareholders as a dividend.
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