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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. Horizon Technology Finance: 9.9% The company's 9.6% Image source: Getty Images.
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 AssetManagement (NEAM) is a subsidiary of Berkshire Hathaway. Data source: YCharts.
Lowe's Companies (NYSE: LOW) Large home improvement retailer 2.1% Data source: Company websites, Google Finance. Enterprise Products Partners (NYSE: EPD) Midstream energy company that operates pipelines and other assets 7.5% ExxonMobil (NYSE: XOM) Large international oil and gas company 3.7%
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.
This week, we speak with Ken Kencel, who is president and chief executive officer of Churchill AssetManagement, a private credit firm with $46 billion in assets under management that was the top US private equity lender in the 2022 PitchBook league tables and was named 2022 Lender Firm of the Year by The M&A Advisor.
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. More importantly, the company has a more stringent risk management approach than most of its peers.
In other words, they're businesses that have demonstrated their staying power to investors through thick and thin. Morgan AssetManagement, 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%.
dividend yield Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC) that specializes in providing capital to venture-backed start-ups. Hercules is different from a typical bank as it tends to offer more flexible financing options. Hercules Capital: 10.6%
Instead, Ares Capital is one of the stocks owned by New England AssetManagement (NEAM). Ares Capital ranks as the largest publicly traded businessdevelopmentcompany (BDC). It provides financing to middle-market businesses that banks sometimes shun.
Investment manager Barings has filed a lawsuit against Corinthia Global Management and former employees Ian Fowler and Kelsey Tucker after the Nomura Holdings-backed private credit assetmanager recruited over 20 employees from Barings in recent years, according to a report by Bloomberg.
But with so many opportunities out there, it's challenging to identify companies that both pay dividends and consistently perform at a high level. One good place to source ideas is to look at businessdevelopmentcompanies (BDCs). Horizon Technology Finance: Dividend yield 11.4% dividend yield.
Ares Management Corp. It has vaulted to the top rungs of the alternative-assetmanagement world by focusing on what it does best: private credit. Yet, like its peers, Ares feels compelled to diversify into other asset classes, such as real estate, infrastructure, and private equity. Apollo Global Management, and KKR.
Instead, it's owned by Berkshire's subsidiary, New England AssetManagement. Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany ( BDC ). It provides financing to middle-market businesses that often encounter challenges securing capital from banks.
However, Buffett does own shares of the stock via Berkshire's subsidiary, New England AssetManagement (NEAM). That yield is so high in large part because Ares is a businessdevelopmentcompany (BDC). BDCs provide financing to small-to-medium-sized businesses.
In 1998, Berkshire Hathaway acquired reinsurance company General Re. Around three years earlier, General Re bought New England AssetManagement (NEAM). NEAM offers assetmanagement services to the insurance industry and manages a separate portfolio from Berkshire Hathaway's. of its total portfolio.
Apex Group, a provider of services to assetmanagers, has just refinanced a slug of debt with a $1.1 Apex is trying to fix a problem common to many PE-owned companies: that their debt was only partially hedged against spiking base rates, meaning interest costs have spiraled dramatically. Advent and Cinven declined to comment.
Ares Capital (NASDAQ: ARCC) , the largest publicly traded businessdevelopmentcompany (BDC) , pays a forward dividend yield of 8.6%. BDCs typically provide financing to middle-market businesses with annual revenue ranging between $10 million and $1 billion. trillion in assets under management.
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