The Motley Fool

SEPTEMBER 7, 2023

Buying shares of businesses that produce profits and commit to returning those profits to their shareholders is an investing strategy with a terrific track record. During the 50-year period from 1973 through 2022, the average dividend-paying stock in the benchmark S&P 500 index delivered a 9.3%

Exchange-Traded Funds 246

Exchange-Traded Funds Debt Amortization Depreciation 246

The Motley Fool

DECEMBER 21, 2023

Oil prices have been falling from their mid-2022 peak, sliding to within striking distance of a new 52-week low just last week. Indeed, the company's stated policy is paying out at least 45% of its free cash flow in the form of dividends, but cash flow is largely a function of ever-changing oil prices. PBR Dividend data by YCharts.

Banks 241

Banks Business Development Companies Prospects Capital 241

The Motley Fool

MAY 2, 2024

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.

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Debt Exchange-Traded Funds Public Companies Capital 243

The Motley Fool

DECEMBER 4, 2023

Once they make such a commitment, returning a portion of profits to shareholders forces management teams to make smarter decisions. By taking fewer unnecessary risks, dividend-paying businesses tend to outperform non-dividend-payers by a wide margin. Image source: Getty Images. yield at recent prices. during the third quarter.

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Debt Investing Amortization Depreciation 233

The Motley Fool

OCTOBER 22, 2024

Companies that dole out a dividend to their shareholders on a regular basis tend to be recurringly profitable and time-tested. These are companies that are highly sensitive to changes in interest rates. Image source: Getty Images. In turn, this shrunk the net interest margin for mortgage REITs, including Annaly.

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Debt Initial Public Offering Exchange-Traded Funds Capital 246

The Motley Fool

FEBRUARY 24, 2024

Most American shareholders see their quarterly payments fluctuate with currency exchange rates but the payout has grown every year, in British pounds, since 2007. There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors. At recent prices, it offers a 9.8% last year from 11.6%

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Private Equity Firms Private Equity Firms Legal Capital 246

The Motley Fool

FEBRUARY 18, 2024

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.

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Investing Capital Business Development Companies Taxes 239

The Motley Fool

AUGUST 23, 2024

Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in high-yield loans to venture-backed companies. Considering how strong the S&P 500 has been since its massive sell-off in 2022, it's impressive just how much Ares has outperformed its peers and the broader market.

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Exchange-Traded Funds Banks Capital Business Development Companies 246

The Motley Fool

JANUARY 23, 2024

Last year, a study released by the Hartford Funds, in cooperation with Ned Davis Research, found that dividend-paying companies delivered an annualized return of 9.18% between 1973 and 2022. That compared to an annualized return of 3.95% for non-paying companies over the same five-decade stretch. Image source: Getty Images.

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Debt Public Companies Capital Assets 245

The Motley Fool

DECEMBER 5, 2023

Companies that pay a regular dividend to their shareholders tend to be profitable on a recurring basis and time-tested. These are businesses that have demonstrated their ability to navigate a challenging economic climate and come out stronger on the other side. Between March 31, 2022 and Sept.

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Debt Liabilities Assets Capital 246

The Motley Fool

JANUARY 6, 2024

The businesses underlying these stocks are still growing thanks to strong advantages over their competitors. AT&T AT&T (NYSE: T) slashed its payout in 2022 following the sale of its media assets, but the company still offers a yield that's miles above average. Shares of the telecom giant offer a juicy 6.5%

Investing 240

Investing Debt Amortization Depreciation 240

The Motley Fool

FEBRUARY 1, 2024

According to a report issued last year by the Hartford Funds, in collaboration with Ned Davis Research, dividend-paying companies have generated an annualized return of 9.18% over the past half-century (1973-2022). Since March 31, 2022, AT&T's net debt has declined from $169 billion to $128.9 yield is safe.

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Debt Investing Liabilities Private Companies 246

The Motley Fool

JULY 14, 2023

Companies that offer a regular payout to their shareholders are usually profitable on a recurring basis and time-tested. PennantPark has the highest yield among the three companies listed here (11.4%) and doles out its payout on a monthly basis. Roughly 10 years ago, J.P.

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Debt Investing Asset Management Capital 246

The Motley Fool

JANUARY 2, 2024

According to a study from Ned Davis Research and Hartford Funds, publicly traded companies that initiated and grew their payouts between 1973 and 2022 generated an annualized return of 10.24%. PennantPark pays its dividend on a monthly basis , with the company increasing its payout twice last year. Image source: Getty Images.

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Debt Liabilities Capital Business Development Companies 242

The Motley Fool

FEBRUARY 8, 2024

In collaboration with Ned Davis Research, Hartford Funds found that dividend payers averaged an annual return of 9.18% over a half-century (1973-2022). By comparison, companies that didn't offer a payout to their shareholders produced an average annual return of just 3.95%. The company raised its monthly payout twice last year.

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Debt Investing Assets Capital 246

The Motley Fool

NOVEMBER 30, 2023

In an effort to combat historically high inflation that briefly surpassed an annualized rate of 9% in June 2022, the nation's central bank has raised its federal funds rate at the fastest pace in more than four decades. BDCs are businesses that invest in the debt and/or equity (common and preferred stock) of middle-market companies.

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Debt Initial Public Offering Leveraging Banks 240

The Motley Fool

JUNE 14, 2024

Shares of this business development company boast a trailing dividend yield of a little over 8%, in fact, and that's based on just its ordinary quarterly payout. Shareholders obviously aren't collecting the entirety of these interest payments in the form of dividends. Like dividends? How Hercules Capital is different.

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Capital Business Development Companies Stakes Prospects 130

The Motley Fool

FEBRUARY 22, 2024

Last year, Hartford Funds released a report that, in collaboration with Ned Davis Research, examined the average annual returns of dividend stocks vs. non-payers over a five-decade stretch (1973-2022). BDCs are companies that invest in the debt or equity (common and preferred stock) of middle-market businesses (i.e,

Debt 230

Debt Investing Capital Business Development Companies 230

The Motley Fool

JUNE 18, 2023

Since their inception in the 1980s by an act of Congress, business development companies (BDCs) have often delivered market-beating total returns for shareholders. Ares Capital's dividend payout ratio was just 85% in 2022. For the sake of clarity, this is based on its net investment income per share of $2.19

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Capital Startups Investing Shareholders 130

The Motley Fool

MAY 5, 2024

Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company ( BDC ) that allows individual investors to take part in the previously elusive world of venture capital investing. It slashed its dividend in 2022 to compensate for the spin-off of its media assets. At recent prices, the stock offers a 6.6%

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Initial Public Offering Venture Capital Startups Capital 130

The Motley Fool

OCTOBER 19, 2024

With the benchmark S&P 500 index up by about 53% since the end of 2022, finding quality stocks that trade at reasonable valuations can be a challenge. Now that it's purely a telecommunications business, investors can expect predictable cash flows supporting its quarterly dividend. yield at recent prices. As one of just three U.S.

Private Equity Firms 130

Private Equity Firms Private Equity Firms Investing Business Development Companies 130

The Motley Fool

OCTOBER 15, 2024

The benchmark S&P 500 index has risen by 51% since the end of 2022. Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) are a pair of well-manged business development companies (BDCs) that offer eye-popping dividend yields. The BDC industry is a lucrative one because U.S.

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Initial Public Offering Professional Services Debt Legal 130

The Motley Fool

JUNE 23, 2024

AT&T AT&T cut its dividend in 2022 to compensate for the spin-off of its unpredictable media assets. The company hasn't raised the payout since slashing it a couple of years ago, and at recent prices, the telecom stock offers a 6.1% Investors shouldn't expect rapid dividend payout raises from these stocks in the near term.

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Debt Investing Amortization Depreciation 130

The Motley Fool

APRIL 7, 2024

It's the largest publicly traded business development company (BDC). As a BDC, Ares Capital must return at least 90% of its income to shareholders as dividends to be exempt from federal taxes. The company continues to generate plenty of income to return as evidenced by its dividend yield of nearly 9.4%.

Capital 130

Capital Business Development Companies Prospects Assets 130

The Motley Fool

FEBRUARY 17, 2024

Its delinquencies are rising, too, pushing its charge-off rate from 1.16% of its total loan portfolio in the final quarter of 2022 up to 1.77% in the final quarter of last year. Ares Capital shares may be a conventional stock, but this isn't a conventional company. The thing is, on balance, these metrics actually aren't all that bad.

Banks 130

Banks Capital Liabilities Assets 130

The Motley Fool

OCTOBER 12, 2024

AT&T AT&T lowered its dividend payout in 2022 to adjust for the sale of its unpredictable media assets. Now that it's strictly a telecommunications business, the cash flows it uses to make dividend payments should be extra reliable. billion in 2022. Hercules also offers a supplemental dividend that it set at $0.32

Business Development Companies 100

Business Development Companies Capital Taxes Finance 100

Pension Pulse

JANUARY 31, 2024

The Bank of England’s systemic stress test of NBFIs made sense after a liquidity squeeze that was triggered by sharp declines in British government bonds (Gilts) in 2022. annually to investors since inception, the company said in a letter to shareholders on Monday. 7, 2021, has distributed 10.5% over the three years.

Banks 59

Banks Pension Funds Financial Institutions Investing 59

Pension Pulse

SEPTEMBER 28, 2023

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.”

Shareholders 52

Shareholders Finance Financing Banks 52

Blackstone

NOVEMBER 16, 2023

The traditional 60/40 portfolio provided insufficient diversification, as the stock-bond correlation turned positive in October 2022. Figure 8: Average Financial Leverage 17 Ratio of Gross Debt and Deposits to Shareholders’ Equity Overall, pressure in a higher-for-longer rate environment is building. Leverage Ratio.

Leveraging 52

Leveraging Banks Debt Leveraged Buyouts 52

The Motley Fool

MARCH 24, 2025

Companies that pay a dividend to their shareholders on a regular basis are: Where to invest $1,000 right now? The reason being it's a highly interest-sensitive industry that typically performs poorly when interest rates are rapidly climbing, as occurred from March 2022 through July 2023. The entirety of its $1.96

Investing 261

Investing Debt Banks Capital 261

The Motley Fool

DECEMBER 31, 2024

From the end of 2022 through Dec. See the 10 stocks Dividend yields among most S&P 500 stocks aren't appealing, but there are a few business development companies (BDCs) that deserve more attention from income-seeking investors than they've been getting. It's been a great couple of years for investors holding U.S.

Investing 246

Investing Amortization Depreciation Capital 246

The Motley Fool

JANUARY 3, 2025

Companies that regularly pay a dividend to their shareholders are almost always profitable on a recurring basis and have proven their ability to navigate challenging economic climates. Another competitive edge for the company, which its name may have given away, is that 100% of its roughly $1.75 Image source: Getty Images.

Debt 246

Debt Exchange-Traded Funds Capital Portfolios 246

The Motley Fool

MARCH 5, 2025

Learn More Companies that dole out a dividend to their shareholders on a regular basis have often demonstrated that their operating model is time-tested. More importantly, these businesses are almost always recurringly profitable and fully capable of providing a clear growth outlook. Where to invest $1,000 right now?

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Debt Capital Business Development Companies Portfolios 130