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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. 30, 2021 to as high as 12.6%.
A pair of misses in the fourth quarter Ares, a prominent businessdevelopmentcompany (BDC) , reported its fourth-quarter and full-year 2024 results. Its total investment income -- read "revenue" -- was $759 million, versus the $707 million it reaped in the same period of 2023.
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. Altria Group acquired NJOY in 2023, and it's one of just three e-cigarette brands with FDA marketing approval at the moment.
In 2022 and 2023, the Federal Reserve hiked interest rates 11 times in an effort to stifle abnormally high levels of inflation. There are many types of businesses that could benefit from reductions in interest rates. In particular, I've been looking closely at businessdevelopmentcompanies ( BDCs ).
in the first quarter of 2023. Due to such remarkable operating performance in recent quarters, it's not unreasonable to expect decent core funds from operations ( FFO ) per share growth from the company over the next few years. in the third quarter of 2023. in the third quarter of 2023.
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.
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. and Energy Transfer wasn't one of them!
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. Its unit price is up nearly 16% in 2023, with a total return of over 27%.
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. Mass defaults caused by a recession are probably the biggest risk with this stock right now.
Ares Capital is organized as a businessdevelopmentcompany (BDC). However, the company's dividend hasn't been in jeopardy. In September 2023, Verizon increased its dividend for the 17th consecutive year. The company generated $14.6 billion of free cash flow in the first three quarters of 2023, up $2.2
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. Starved for capital, midmarket businesses are willing to pay above-average interest rates.
Q3 2023 was the 15th in a row with more than 200,000 new AT&T Fiber subscribers, and its consumer-broadband sales will likely rise even further in 2024. AT&T Fiber is currently able to serve around 24 million consumer and business locations, and it's on pace to reach more than 30 million by the end of 2025. year over year.
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.
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. Its network covers 175 million people with midband 5G capability, and this figure should reach 200 million by the end of 2023. yield at recent prices.
Prospect received new financing in May that will likely result in it resuming payments before the end of 2023. yield PennantPark Floating Rate Capital (NYSE: PFLT) is a businessdevelopmentcompany (BDC), which is another type of entity that can avoid paying taxes by distributing nearly all its profits to shareholders as a dividend. .*
Enterprise ended 2023 with $6.8 These projects provide visibility to new sources of cash flow for the partnership for this year and beyond," co-CEO Jim Teague said in the company's fourth-quarter earnings release. Ares is a leading businessdevelopmentcompany ( BDC ) based in the U.S. Ares spread its $22.9
As a result, free cash flow in the first half of 2023 rose 11% year over year to $8 billion. Ares Capital Ares Capital (NASDAQ: ARCC) is a large businessdevelopmentcompany (BDC) that essentially acts as a lender to many of the midsized businesses that large banks tend to ignore. At the moment, Verizon has just 2.3
billion, and management expects at least $16 in free cash flow for all of 2023. That's twice as much as the company needs to meet its dividend commitment, which suggests a significant payout raise could be around the corner. This businessdevelopmentcompany (BDC) makes monthly payments, and it offers an eye-popping 11.3%
That's extremely high for a company that has raised its dividend payout 58 times over the past 54 years. Altria sold its stake in Juul for a steep loss in 2023 and acquired NJOY, another e-cigarette manufacturer. year over year during the first nine months of 2023. dividend yield at recent prices. of the total portfolio at cost.
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.
Ares Capital Corporation: Ultra-high yield and mild growth Ares Capital Corporation (NASDAQ: ARCC) is a businessdevelopmentcompany ( BDC ), which means it can avoid paying income taxes by delivering at least 90% of its earnings to investors as a dividend. In 2023, American Tower expects $9.70 per share annually.
in 2023 because of the continued popularity of AT&T Fiber. Last year was the sixth in a row that the company added over 1 million new fiber subscribers. This is a businessdevelopmentcompany ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profits to shareholders as a dividend.
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. Strong total returns.
In late 2022 and early 2023, the stock price fell hard, and its dividend yield spiked above 15% in response to news that some of its largest tenants were having trouble making ends meet. Now that some of that risk has been alleviated , the company has a pretty good chance to continue meeting its dividend obligation.
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.
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 However, AGNC's tangible book value has increased each of the past two quarters going from $8.08 at the end of March 2024.
Dividend stocks are Wall Street's unsung hero In 2023, the investment advisors at Hartford Funds released a lengthy report that examined the ins and outs of what makes dividend stocks so great. Investors, say hello to businessdevelopmentcompany (BDC) PennantPark Floating Rate Capital (NYSE: PFLT).
Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest businessdevelopmentcompany ( BDC ). In 2023, the company earned U.S. These tax-advantaged entities are popular among income-seeking investors because they must distribute at least 90% of their profits to investors as a dividend. per share annually.
Dividend-paying stocks tend to outperform shares of businesses that aren't committed to distributing a significant portion of their profits -- and the differences are dramatic. During the 50-year period between 1973 and 2023, dividend-paying stocks in the benchmark S&P 500 index generated a 9.17% average annual return.
The second quarter of 2023 was the third consecutive quarter with more than 400,000 net broadband subscribers. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Cory Renauer has no position in any of the stocks mentioned. These rules make steady dividend growth extra challenging, but this BDC appears up to the task. .*
PennantPark Floating Rate Capital: 11.67% yield A second monster dividend stock that can collectively allow you to generate $100 in monthly income from an initial investment of $9,300 (split equally) is businessdevelopmentcompany (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). Although PennantPark was holding $157.2
It's in a category of investments called businessdevelopmentcompanies , or BDCs. As the name suggests, these outfits help up-and-coming companies become all they can be. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
According to the report's findings, dividend-paying companies delivered an average annual return of 9.17% over a half-century (1973-2023), while being 6% less volatile than the benchmark S&P 500. PennantPark has been paying a monthly dividend since July 2011, which is mere months after it debuted as a public company.
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.
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.
From 1964 to 2023, Berkshire Hathaway returned 4,384,748%. At the end of 2023, Berkshire held $168 billion of cash and marketable securities on its balance sheet. Remember to think big A common mistake that beginner investors make is spending an inordinate amount of time trying to find the next big opportunity.
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. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
PennantPark Floating Rate Capital PenantPark Floating Rate Capital (NYSE: PFLT) is a businessdevelopmentcompany ( BDC ) that offers investors a huge 10.9% Despite the challenges, just three of its portfolio companies representing less than 1% of the portfolio were on non-accrual status at the end of September. .*
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC). See the 10 stocks *Stock Advisor returns as of December 18, 2023 Keith Speights has positions in Ares Capital and Enterprise Products Partners. The Motley Fool has a disclosure policy.
The company needed 84% of the free cash flow it generated over the past year to meet its dividend commitment. yield Unlike the telecom stocks on this list, PennantPark Floating Rate Capital (NYSE: PFLT) is a businessdevelopmentcompany (BDC). PennantPark Floating Rate Capital: An 11.7% and AT&T wasn't one of them!
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. and AT&T wasn't one of them!
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. BDCs are required to pay out 90% of their taxable income to investors each year.
Realty Income endured a challenging campaign in 2023, with higher Treasury bond yields and concerns about a potential U.S. This predominantly under-the-radar BDC increased its monthly payout twice in 2023. BDCs are businesses that invest in small- and micro-cap companies (collectively known as "middle-market companies").
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