The Motley Fool

NOVEMBER 3, 2024

That's because companies rarely commit to distributing a portion of their profits to shareholders unless they're already profitable and likely to stay that way. Dividend-paying businesses have to be extra careful with their cash flows, which tends to benefit investors. Image source: Getty Images.

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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. 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.

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The Motley Fool

JULY 5, 2023

REITs in general make great investment vehicles for income-seeking investors because they can avoid paying income taxes as long as they distribute at least 90% of their profits to shareholders as a dividend. Prospect received new financing in May that will likely result in it resuming payments before the end of 2023.

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Taxes Investing Prospects Shareholders 246

The Motley Fool

DECEMBER 4, 2023

Businesses usually become profitable on a recurring basis long before they commit to a dividend program. Once they make such a commitment, returning a portion of profits to shareholders forces management teams to make smarter decisions. Image source: Getty Images. yield at recent prices. This figure fell to a very manageable 1.2%

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The Motley Fool

AUGUST 13, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (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!

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The Motley Fool

APRIL 22, 2024

From 1964 to 2023, Berkshire Hathaway returned 4,384,748%. Additionally, all of these businesses generate consistent, robust cash flow. Subsequently, these excess profits are used for dividends and share buybacks -- both of which are rewarding for shareholders. Looked at another way, the fund's compounded annual gain of 19.8%

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Exchange-Traded Funds Banks Shareholders Business Development Companies 236

The Motley Fool

DECEMBER 17, 2023

Ares Capital is organized as a business development company (BDC). Regulations require that BDCs return a minimum of 90% of taxable income to shareholders in the form of dividends. However, the company's dividend hasn't been in jeopardy. The company generated $14.6 The company generated $14.6

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The Motley Fool

JUNE 15, 2023

As a REIT, Medical Properties Trust can avoid paying income taxes by distributing at least 90% of earnings to shareholders as dividends. 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.

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The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). As a BDC, Ares Capital must return at least 90% of its taxable income to shareholders in the form of dividends. The company's distribution yield stands at 8.6%.

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New York Stock Exchange Buyout Investing Stock Exchanges 240

The Motley Fool

DECEMBER 21, 2023

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. even if they bolster shareholders' total returns. A big piece of whatever profits it's producing are passed along to shareholders in cash. Bottom line?

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The Motley Fool

MARCH 6, 2024

dividend yield Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in providing capital to venture-backed start-ups. Since Hercules is a BDC, it's required to pay out 90% of its taxable income to shareholders each year in the form of a dividend. Hercules Capital: 10.6% Rithm Capital: 9.1%

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The Motley Fool

OCTOBER 24, 2024

Ares Capital is a business development company ( BDC ) that provides financing for middle-market companies (businesses that generate between $10 million and $250 million in earnings before interest, taxes, depreciation, and amortization ( EBITDA ) every year). Should you invest in it today?

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The Motley Fool

FEBRUARY 19, 2024

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 business development company ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profits to shareholders as a dividend.

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The Motley Fool

AUGUST 3, 2024

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. over the past five years.

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The Motley Fool

APRIL 28, 2024

Let's break down five companies that are established dividend payers, and assess why holding each of these stocks over a long-term time horizon can lead to massive gains for your portfolio. Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC). by the end of 2023.

Leveraged Buyouts 244

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The Motley Fool

MAY 2, 2024

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. 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 3, 2023

It's a business development company (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.

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The Motley Fool

JUNE 14, 2023

Ares Capital: A 10.05% yield Ares Capital (NASDAQ: ARCC) is a business development company, or BDC. These specialized investment vehicles can avoid paying income taxes by distributing at least 90% of their profits to shareholders. Mass defaults caused by a recession are probably the biggest risk with this stock right now.

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Banks Amortization Debt Capital 243

The Motley Fool

JUNE 27, 2023

These companies are willing to distribute their earnings to shareholders, but that doesn't mean they want to offer eye-popping dividend yields. Investors have pushed their stock prices down because they aren't entirely convinced these businesses can continue growing earnings at a healthy pace. Image source: Getty Images.

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Shareholders Assets Business Development Companies Taxes 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

JULY 27, 2023

Verizon An investment of $43,800 is enough to generate $3,333 in annual dividend income from Verizon (NYSE: VZ) at the moment, plus the company's known for steadily raising its payout. yield, and shareholders can reasonably expect another bump in a couple of months. At recent prices, the stock offers a big 7.6% annually. .*

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Investing Prospects Taxes Capital 245

The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. The Motley Fool has a disclosure policy.

Capital 239

Capital Business Development Companies Taxes Shareholders 239

The Motley Fool

JANUARY 5, 2024

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, business development companies (BDCs) represent a unique opportunity. BDCs are required to pay out 90% of their taxable income to investors each year.

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Mergers and Acquisitions Leveraged Buyouts Due Diligence Portfolios 246

The Motley Fool

SEPTEMBER 18, 2023

These businesses aren't flashy, but they do produce reliable profits. Plus, they're committed to distributing earnings to their shareholders. The second quarter of 2023 was the third consecutive quarter with more than 400,000 net broadband subscribers. Image source: Getty Images. and higher.

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Investing Debt Legal Capital 243

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. yield The second magnificent ultra-high-yield dividend stock that can be bought with confidence right now is little-known business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT).

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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

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. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Kody Kester has no position in any of the stocks mentioned. during the year.

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Capital Startups Investing Shareholders 130

The Motley Fool

NOVEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) on the market. Its assets under management total $395 billion, with roughly two-thirds of that amount going toward credit financing for middle-market businesses. and Verizon Communications wasn't one of them!

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Capital Business Development Companies Financing Finance 130

The Motley Fool

AUGUST 23, 2024

After a spectacular performance in 2023 and a roaring start to 2024, the capital markets have started to cool down as of late. Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in high-yield loans to venture-backed companies. right now.

Exchange-Traded Funds 246

Exchange-Traded Funds Banks Capital Business Development Companies 246

The Motley Fool

JANUARY 22, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC) based on market cap. It provides financing to middle-market businesses with a focus on the upper tier of the market. The company's dividend yield is nearly 9.5%. The wireless market is highly competitive.

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Initial Public Offering Business Development Companies Capital Prospects 130

The Motley Fool

AUGUST 25, 2023

Companies that regularly dole out a dividend to their shareholders tend to be profitable on a recurring basis, are time-tested, and can provide investors with transparent long-term growth outlooks. between September 2021 and June 2023. There is a myriad of investing strategies that can pay off on Wall Street. wasn't one of them!

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Debt Initial Public Offering Investing Capital 246

The Motley Fool

JUNE 23, 2023

Companies that offer a regular dividend to their shareholders are usually profitable on a recurring basis and time-tested. BDCs invest in middle-market companies (predominantly small- and micro-cap businesses) and fall into two categories: debt-focused and equity-focused. annualized return for the non-payers.

Debt 246

Debt Investing Asset Management Assets 246

The Motley Fool

AUGUST 23, 2023

A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Sporting a whopping 10% dividend yield, investors may initially think that the business development company ( BDC ) Ares Capital (NASDAQ: ARCC) is a yield trap.

Capital 130

Capital Earnings Before Interest Amortization Depreciation 130

The Motley Fool

JUNE 8, 2024

Hercules Capital Hercules Capital is a business development company ( BDC ), which means it has to return at least 90% of the profits it generates to shareholders as a dividend. 31, 2023, Altria shipped 1.3 Altria Group's $12.8 During the six-month period that ended on Dec. million NJOY devices.

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Mergers and Acquisitions Initial Public Offering Venture Capital Capital 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. Ken Griffin and Citadel Advisors purchased 161,891 shares of the BDC during the last three months of 2023.

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Venture Capital Initial Public Offering Startups Capital 130

The Motley Fool

JANUARY 6, 2024

As one of three giant telecom businesses in America, there's a very good chance that rising broadband revenues will allow it to keep raising that payout for at least another decade. Ares Capital Ares Capital (NASDAQ: ARCC) is a business-development company ( BDC ) that offers a huge 9.4% yield at recent prices.

Investing 240

Investing Debt Earnings Before Interest Amortization 240

The Motley Fool

FEBRUARY 22, 2024

Dividend stocks may not be highfliers like the " Magnificent Seven " but can generally increase in value over time and make their patient shareholders richer. PennantPark pays its dividend on a monthly basis and raised its payout twice in 2023. generally small and unproven companies). of the U.S. cigarette market.

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