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In The Power of Dividends: Past, Present, and Future , the researchers at Hartford Funds compared the performance of dividend stocks to non-payers between 1973 and 2023. BDCs are a type of business that invests in the equity (common and preferred stock) and/or debt of middle-market companies. Through Sept. Treasury yields.
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC). It provides financing to middle-market businesses with a special focus on the upper end of this market. Ares has roughly $395 billion in assets under management. Its network covers 41 U.S.
Billionaire hedge fund manager Ken Griffin more than tripled Citadel Advisors' position in Hercules Capital (NYSE: HTGC) during the last three months of 2023. million shares in the fourth quarter of 2023. A majority of Hercules Capital's assets are invested in debt structured with warrants , equity , and options. last year.
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC) in the world. It provides alternative financing to middle-market companies across a wide range of industries. billion in the second quarter of 2023. midstream energy industry.
Morgan Asset Management, a division of money-center bank JPMorgan Chase , released a study that compared the performance of publicly traded companies that initiated and grew their payouts between 1972 and 2012 to public companies that didn't offer a payout over the same timeline. In 2013, J.P.
To be sure, some higher-yielding assets aren't good picks. Ares Capital has handily outperformed the S&P 500 since the company's IPO in 2004 as well as over the last three-year and fie-year periods. Businessdevelopmentcompanies (BDCs) have become increasingly attractive sources of capital for small-to-medium-sized businesses.
Ares Capital: A 10.05% yield Ares Capital (NASDAQ: ARCC) is a businessdevelopmentcompany, or BDC. Ares Capital is essentially a lender to midsized companies that have a hard time getting the big banks to return their calls. AT&T cut its dividend in 2022, but it also spun off its unpredictable media assets.
yield If you haven't paid attention to AT&T (NYSE: T) for a while, you might not realize it spun off its cable TV assets in 2021, and last year, its WarnerMedia assets became part of Warner Bros. Now that AT&T is purely a telecom business again, investors can reasonably expect steadily growing dividend payments.
As a businessdevelopmentcompany (BDC) , Ares must return at least 90% of its income to shareholders in the form of dividends for its profits to be exempt from taxes. The company has a lot of income to return with its dividend yield topping 9.2%. The company should be able to keep increasing FCF.
The stock offers an enormous yield now because investors are nervous about the company's new e-cigarette product, NJOY, and its ability to compete against a slew of illicit products that still contain the fruity flavors that the Food and Drug Administration (FDA) banned in 2020. The illicit market for flavored e-vapor products in the U.S.
Businessdevelopmentcompanies (BDCs) can be a great source of dividend income, in part because they are required to pay out at least 90% of their taxable income each year as dividends. The investment firm New England Asset Management (NEAM) is a subsidiary of Berkshire Hathaway. Data source: YCharts.
Realty Income endured a challenging campaign in 2023, with higher Treasury bond yields and concerns about a potential U.S. Spirit Realty's CRE portfolio will complement Realty Income's existing assets, while allowing the combined company to further diversify beyond retail. recession weighing on most REITs.
Morgan Asset Management, released a report that compared the returns of publicly traded companies initiating a dividend and growing their payout over a period of 40 years (1972 to 2012) to publicly traded companies that didn't offer a dividend over the same time line. As of the end of March 2023, PennantPark held $157.2
The company reported cigarette shipments that declined 9.9% Brand loyalty is strong enough that the company was able to raise prices on Marlboros and limit the losses. In 2023, smokable product revenue fell just 1.6%, net of excise taxes. In 2023, broadband revenue soared 8.1% Mobility service revenue rose 4.4%
Ares Capital is organized as a businessdevelopmentcompany (BDC). Enterprise Products Partners' fortunes don't hinge on oil and gas prices because of its business model built around pipelines and other midstream assets. However, the company's dividend hasn't been in jeopardy. The company generated $14.6
Now that it's shed all its risky media assets, income-seeking investors can look forward to steady payouts that could grow significantly in the years ahead. AT&T isn't installing many landlines these days, but heaps of new high-speed internet connections for businesses and mobile devices could drive steady growth of its bottom line.
Ares Capital Ares Capital (NASDAQ: ARCC) reigns as the largest publicly traded businessdevelopmentcompany (BDC). It provides financing primarily to middle-market businesses. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Keith Speights has positions in Devon Energy and Medical Properties Trust.
Shares of the phone and internet service provider have fallen about 23% in 2023 as investors worry about a high debt load and potential litigation regarding lead-lined cables. Selling off its media assets helped reduce AT&T's debt load, but the company was still sitting on $132 billion in net debt at the end of June.
Stock Business Summary Dividend Yield 5. Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) Owns and operates infrastructure assets including pipelines, data centers, and utilities 5% (BIP) 4.4% (BIPC) 6. Enbridge (NYSE: ENB) Midstream energy company that operates pipelines and other assets 7.4%
In 2023, Hartford Funds released an extensive report ("The Power of Dividends: Past, Present, and Future") that examined the ins and outs of how dividend stocks have outperformed over long stretches. These "long-term assets" are often mortgage-backed securities (MBS), which is how the industry got its name. billion of its $60.2
Although other asset classes have delivered nominal gains for investors, including housing, gold, and Treasury bonds, no other asset class comes remotely close to the average annual rate of return that stocks have generated over the last 100 years. Lastly, AGNC's investment team relies almost exclusively on agency assets.
It's a businessdevelopmentcompany (BDC) that's required to distribute at least 90% of its income to shareholders in the form of dividends to be exempt from federal taxes. Energy Transfer generated excess cash flow of around $1 billion after its distributions in the third quarter of 2023.
The company reported total revenue that rose 1.4% In 2022, AT&T slashed its dividend in half to adjust for the sale of its media assets and still hasn't raised the payout. in 2023 because of the continued popularity of AT&T Fiber. of the company's portfolio at fair value was on nonaccrual status at the end of 2023.
The value of AGNC's holdings not surprisingly tumbled as reflected in the nearly -50% decline in tangible book value AGNC saw from the start of 2022 until the end of 2023. at the end of September 2023 to $8.84 It's also grown its net-asset value (NAV) by 130% since 2007. at the end of March 2024. in June.
In particular, one table compared the average annual return of income stocks to non-payers over the last 50 years (1973-2023), while also taking into account the average volatility of each group. As of June 30, only $1 billion of its $66 billion investment portfolio was put to work in riskier assets.
AT&T: 6.62% yield The first superior ultra-high-yield dividend stock that's itching to be bought as we motor toward the end of 2023 is legacy telecom stock AT&T (NYSE: T). 30, 2023, AT&T's net debt fell from $169 billion to $128.7 million of the company's $906.3 When combined with cash payments, this spinoff led to $40.4
Anyone familiar with middle-market financing probably knows the company well, though. It's the largest publicly traded businessdevelopmentcompany (BDC) providing financing solutions to middle-market businesses. Ares Capital Ares Capital (NASDAQ: ARCC) might be the least well-known of my picks.
It's a well-documented fact that companies committed to distributing their profits usually outperform companies that don't have a dividend program. During a 50-year period that ended in 2023, non-dividend-paying stocks in the benchmark S&P 500 index delivered a 4.27% average annual return. For decades, U.S.
Although the stock market has its ups and downs, equities have handily outperformed other asset classes over the last century, including Treasury bonds, housing, oil, and gold. Investors, say hello to businessdevelopmentcompany (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). But not all stocks are created equal.
Mortgage REITs like Annaly want to borrow money at low short-term lending rates and use this capital to buy higher-yielding long-term assets, such as mortgage-backed securities (MBS). Not having the nation's central bank as a buyer of MBSs opens the door for Annaly to land more lucrative MBSs for its own asset portfolio.
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.
AT&T slashed its dividend after spinning off the last of its media assets in 2022, and the stock has been under pressure ever since. With customers who rarely disconnect their mobile or fiber internet connections, AT&T's telecom business is a reliably profitable one that generated $18 billion in free cash flow over the past 12 months.
One of the best ways to create wealth is by investing in companies that pay a dividend. While many different types of companies pay dividends, businessdevelopmentcompanies (BDCs) represent a unique opportunity. The company's 9.6% The Motley Fool has no position in any of the stocks mentioned.
AT&T Income-seeking investors should be flocking to AT&T (NYSE: T) now that it's sold off all of its risky media assets. This is a heavy load, but highly reliable cash flows from mobile, home, and business internet subscribers are sufficient to whittle it down to a more manageable figure. yield at recent prices.
Net-interest margin" refers to the average yield AGNC nets from its owned assets less the average yield on what it's borrowed. However, there is light at the end of the tunnel for AGNC, and this good news should provide a lift to the company's shares sooner than later. between September 2021 and June 2023. wasn't one of them!
Ares Capital Ares Capital (NASDAQ: ARCC) is a businessdevelopmentcompany ( BDC ), which means it lends to companies that are too big for small business loans but still too small to work with large banks. There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors.
Some are owned by Berkshire subsidiary New England Asset Management (NEAM). Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded businessdevelopmentcompany (BDC). Ares Capital appears to have solid growth prospects going forward as middle-market businesses increasingly turn to it to raise capital.
Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded businessdevelopmentcompany (BDC). Energy Transfer Energy Transfer (NYSE: ET) is a large midstream energy company that operates pipelines, storage facilities, and more. The company's distribution yield stands at 8.6%. isn't shabby at all.
What should really excite investors are Realty Income's efforts to diversify its CRE portfolio beyond traditional retail assets. PennantPark increased its monthly payout twice in 2023 and is yielding close to 11%. As of the end of 2023, PennantPark held a little over $180 million in equity securities and $1.09 billion, as well.
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. Don't overlook PennantPark's investment diversification, either.
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%
In other words, they're businesses that have demonstrated their staying power to investors through thick and thin. Morgan Asset Management, a division of money-center bank JPMorgan Chase , publicly traded companies that initiated and grew their payouts between 1972 and 2012 produced an annualized return of 9.5%. delinquent).
Between the start of 2023 and the midpoint of 2024, the bulls were firmly in control on Wall Street. A BDC is a company that invests in the debt or equity (common and/or preferred stock) of middle-market businesses -- i.e., generally unproven small- and micro-cap companies. As of the closing bell on Aug.
Although other asset classes have delivered positive nominal returns, including bonds, housing, and various commodities, such as gold, none have come close to matching the annualized total return of stocks, including dividends, over the last century. For well over a century, Wall Street has been a wealth-building machine.
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